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Other Added - Expansion & Exit: Getting the Best Out of Your Golden Parachute
The Internet has simplified everything from shopping to banking and now even employment has been made easier because you can have a job online. That is right, as amazing as it sounds you can work from the comfort of your home, while traveling, or anywhere you have a computer because your job online only requires you meet deadlines. You can work whenever fits your schedule, meaning you have more time for the important things like your family and have your job online to help pay the bills. If you are interested in finding a job online, but are not sure what you could possibly do, consider the following job titles. Right now you can find a job online in any of these markets as well as many others.Job Online Suggestion #1 WritingThe Internet is made up of words, mostly, so writers have a great opportunity for finding a job online. Web sites always need new con
What Kinds of Companies?
What kinds of companies are being sought? These would be the general parameters:
1. Investment (or sales) of at least $500,000 in the company, net assets of $500,000 and a pretax profit of $300,000 (reinvested in the company).
2. In business for one year or more. (No startups.)
3. Manufacturing and/or service industries, high tech, biotech, internet, etc.
4. A major potential national and/or international market to be expanded into. If you are already in the international marketplace, all the better.
5. Proven management.
6. A NON-US company.
7. A desire and willingness to work the process through for five years.
Well, you knew there had to
The principal sources of venture capital funds for a business firm are equity capital, preference capital, debenture capital and term loans. Equity capital represents ownership capital because equity shareholders collectively own the company. They enjoy the rewards, as well as bear the risks of ownership. However, their liability, unlike the liability of the owner in a proprietary firm and the partners in a partnership concern, is limited to their capital contributions. As equity capital funds represent permanent capital, there is no liability for repayment. It enhances the creditworthiness of the company. In general, the larger the equity base, the higher the ability of the company to obtain credit.Preference capital represents a hybrid form of financing. It partakes of some characteristics of equity and some attributes of debentures. It resembles equity in the
For most entrepreneurs and business owners, there is a desire to expand their company to some point of success, then retire. Or move on to another business.
The Usual Solutions
There are generally two solutions: (1) Sell out directly or (2) do an IPO - the traditional Initial Public Offering - hope you raise some capital, wait a few years, then sell your stock... if it’s worth anything.
Selling out a privately held company usually results in a price 150%+ of profits. If you’ve been doing $1 million, look for about $1.5-4 million for your golden parachute. Minus taxes, of course. Not a terribly exciting prospect after all those years of work.
Solution #2 is daunting as well. You’ll spend close to $3 million doing an IPO. Much of your time, up to a year actually, will be spent doing “dog and pony” shows for prospective market makers and institutional buyers, often ignoring your business in the process. Your chances of raising your targeted funds are about 50/50 at best. And 98% of all small companies going public are not in business five years later. Doesn’t sound too promising either.
However, the major advantage to becoming a public company, among many others, is that your company is valued at a multiple of its price to earnings (P/E) ratio, normally far above sales. If it were possible to become such a company, raise needed expansion capital and build your stock value towards a major retirement nest egg - *without* having to do an IPO - you’d have a sane answer to your problem.
The Better Solution
It’s possible. There’s a Solution #3.
The key is to find a group willing to invest the amount needed for solid expansion, without giving up control of your company.
One such group, represented internationally by Capital Funds Group, does precisely this. It provides a simple and inexpensive method to bring you into the public sphere. It provides you with the SEC-required number of qualified shareholders. It also works with an offshore investment pool which will guarantee to purchase enough of your new shares to fund your company with enough to capitalize a major expansion. You will, however, need to follow their expansion strategy.
The group does more than just fund you. They will teach you how to make your stock support program work effectively...and inexpensively. They will guide you in expanding onto other markets internationally. They will protect you from short sellers. They will advance more funds as necessary if you’re following their expansion strategy. And much more.
Benefits to the Business Entrepreneur
Before taking such a step, consider the benefits of becoming a public company.
a. Private placements are easier if you are a public company, as the investors can trade their stock on the open market.
b. When it comes time to sell, your company is priced on its share value times the number of issued shares, generally far exceeding the balance sheet value of a private company.
c. Banks prefer public to private companies when considering loans.
d. It’s easier for a public company to expand into the Global Village.
e. You will become more attractive as a potential acquisition or merger target.
f. You will have sufficient funds with which to market and distribute your goods or services nationally or globally.
What Kinds of Companies?
What kinds of companies are being sought? These would be the general parameters:
1. Investment (or sales) of at least $500,000 in the company, net assets of $500,000 and a pretax profit of $300,000 (reinvested in the company).
2. In business for one year or more. (No startups.)
3. Manufacturing and/or service industries, high tech, biotech, internet, etc.
4. A major potential national and/or international market to be expanded into. If you are already in the international marketplace, all the better.
5. Proven management.
6. A NON-US company.
7. A desire and willingness to work the process through for five years.
Well, you knew there had to b
Despite the current issues challenging NASA, it’s financing and the future of the Space Shuttle Program, there is a key lesson you can learn from its past successes. This lesson is about setting a complete goal and including the wider implications for your business and your staff.During the space program in the 60’s and 70’s the over-riding focus for the flights to the moon and the other missions was not just getting the astronauts into space but also bringing them back safely. The Apollo Program was designed with the specific goal of landing humans on the moon and assuring their safe return back to Earth. The “safe return” part of this is often overlooked but this was actually a very key element in ensuring the high level of safety and testing. It also drove the NASA engineers to ensure that they had effective processes for identifying the causes of problems
However, the major advantage to becoming a public company, among many others, is that your company is valued at a multiple of its price to earnings (P/E) ratio, normally far above sales. If it were possible to become such a company, raise needed expansion capital and build your stock value towards a major retirement nest egg - *without* having to do an IPO - you’d have a sane answer to your problem.
The Better Solution
It’s possible. There’s a Solution #3.
The key is to find a group willing to invest the amount needed for solid expansion, without giving up control of your company.
One such group, represented internationally by Capital Funds Group, does precisely this. It provides a simple and inexpensive method to bring you into the public sphere. It provides you with the SEC-required number of qualified shareholders. It also works with an offshore investment pool which will guarantee to purchase enough of your new shares to fund your company with enough to capitalize a major expansion. You will, however, need to follow their expansion strategy.
The group does more than just fund you. They will teach you how to make your stock support program work effectively...and inexpensively. They will guide you in expanding onto other markets internationally. They will protect you from short sellers. They will advance more funds as necessary if you’re following their expansion strategy. And much more.
Benefits to the Business Entrepreneur
Before taking such a step, consider the benefits of becoming a public company.
a. Private placements are easier if you are a public company, as the investors can trade their stock on the open market.
b. When it comes time to sell, your company is priced on its share value times the number of issued shares, generally far exceeding the balance sheet value of a private company.
c. Banks prefer public to private companies when considering loans.
d. It’s easier for a public company to expand into the Global Village.
e. You will become more attractive as a potential acquisition or merger target.
f. You will have sufficient funds with which to market and distribute your goods or services nationally or globally.
What Kinds of Companies?
What kinds of companies are being sought? These would be the general parameters:
1. Investment (or sales) of at least $500,000 in the company, net assets of $500,000 and a pretax profit of $300,000 (reinvested in the company).
2. In business for one year or more. (No startups.)
3. Manufacturing and/or service industries, high tech, biotech, internet, etc.
4. A major potential national and/or international market to be expanded into. If you are already in the international marketplace, all the better.
5. Proven management.
6. A NON-US company.
7. A desire and willingness to work the process through for five years.
Well, you knew there had to
It is a widely known fact that the failure rates in small businesses in America are quite high. The American Dream of owning one’s business is not as easy as it seems. Running your own business no matter what kind is hard work and it does not matter if it is a Franchise or non-Franchised Business.Franchised Businesses have lower failure rates, but that does not mean they don’t fail. I had often watched small businesses come and go in our industry for the better part of 30 years. In the Mobile Car Wash Industry, which for the most part I started in 1979 in California, as there were only a few similar operations around the country at that time and all of them were small. We had almost over night copycat competitors and at least 3,000 copycats within the first five years in our state alone.We put at least 10 out of business in every city across the country we
The key is to find a group willing to invest the amount needed for solid expansion, without giving up control of your company.
One such group, represented internationally by Capital Funds Group, does precisely this. It provides a simple and inexpensive method to bring you into the public sphere. It provides you with the SEC-required number of qualified shareholders. It also works with an offshore investment pool which will guarantee to purchase enough of your new shares to fund your company with enough to capitalize a major expansion. You will, however, need to follow their expansion strategy.
The group does more than just fund you. They will teach you how to make your stock support program work effectively...and inexpensively. They will guide you in expanding onto other markets internationally. They will protect you from short sellers. They will advance more funds as necessary if you’re following their expansion strategy. And much more.
Benefits to the Business Entrepreneur
Before taking such a step, consider the benefits of becoming a public company.
a. Private placements are easier if you are a public company, as the investors can trade their stock on the open market.
b. When it comes time to sell, your company is priced on its share value times the number of issued shares, generally far exceeding the balance sheet value of a private company.
c. Banks prefer public to private companies when considering loans.
d. It’s easier for a public company to expand into the Global Village.
e. You will become more attractive as a potential acquisition or merger target.
f. You will have sufficient funds with which to market and distribute your goods or services nationally or globally.
What Kinds of Companies?
What kinds of companies are being sought? These would be the general parameters:
1. Investment (or sales) of at least $500,000 in the company, net assets of $500,000 and a pretax profit of $300,000 (reinvested in the company).
2. In business for one year or more. (No startups.)
3. Manufacturing and/or service industries, high tech, biotech, internet, etc.
4. A major potential national and/or international market to be expanded into. If you are already in the international marketplace, all the better.
5. Proven management.
6. A NON-US company.
7. A desire and willingness to work the process through for five years.
Well, you knew there had to
The Pink Sheets. Pink Sheets stocks. The Pinks. Everyone seems to be talking about trading shares on this penny stock listing service and the chatter is only going to get louder once the Pink Sheets’ OTC QX division becomes fully functional. With all the buzz surrounding the Pink Sheets many people are asking themselves if they should check out investing in this market. Rumors abound in on-line chat rooms like Raging Bull about fortunes being made by those who trade in the smallest of small caps. Is it possible? Is it true? Is there something about the Pink Sheets that make it different from the NASDAQ or the Big Board? The answer is yes and I want to provide some antidotal evidence about the Pink Sheets.My name is Richard Bond and I want to tell you how trading Pink Sheets stocks turned my life around.It started when I turned my financial situation around
Benefits to the Business Entrepreneur
Before taking such a step, consider the benefits of becoming a public company.
a. Private placements are easier if you are a public company, as the investors can trade their stock on the open market.
b. When it comes time to sell, your company is priced on its share value times the number of issued shares, generally far exceeding the balance sheet value of a private company.
c. Banks prefer public to private companies when considering loans.
d. It’s easier for a public company to expand into the Global Village.
e. You will become more attractive as a potential acquisition or merger target.
f. You will have sufficient funds with which to market and distribute your goods or services nationally or globally.
What Kinds of Companies?
What kinds of companies are being sought? These would be the general parameters:
1. Investment (or sales) of at least $500,000 in the company, net assets of $500,000 and a pretax profit of $300,000 (reinvested in the company).
2. In business for one year or more. (No startups.)
3. Manufacturing and/or service industries, high tech, biotech, internet, etc.
4. A major potential national and/or international market to be expanded into. If you are already in the international marketplace, all the better.
5. Proven management.
6. A NON-US company.
7. A desire and willingness to work the process through for five years.
Well, you knew there had to
Ok. So you’ve decided it’s time to make a career move!Maybe you just got laid off. Or management is driving you crazy. Maybe you need to make more money. Or you’re anxious to advance yourself.Whatever your reasons, it’s critically important that you go into the job marketplace with your eyes wide open. If you haven’t been there recently, things have changed--a lot!For example, the expectations of employers are different from what they were just a few years ago. Formerly, it was enough to have a good resume with a strong employment track record of accomplishments. You could tell an employer what you used to do and hope that he/she would make the connection and see you as a valuable addition to the organization.Those days are gone forever!Today, you have to be able to demonstrate that you understand the goals of the organization a
What Kinds of Companies?
What kinds of companies are being sought? These would be the general parameters:
1. Investment (or sales) of at least $500,000 in the company, net assets of $500,000 and a pretax profit of $300,000 (reinvested in the company).
2. In business for one year or more. (No startups.)
3. Manufacturing and/or service industries, high tech, biotech, internet, etc.
4. A major potential national and/or international market to be expanded into. If you are already in the international marketplace, all the better.
5. Proven management.
6. A NON-US company.
7. A desire and willingness to work the process through for five years.
Well, you knew there had to be a catch. What’s that about? You have to agree that all your insider stock - which, by the way, constitutes the controlling interest in your company - will be pooled and not traded for a full five years, or until an offer of buy out or merger is tendered by an industry giant. There will be no dilution of stock value by insider trading. In this way, the Investors and Merchant Banker can help you control and maintain the growth of the stock in the marketplaces, ensuring a positive result for all investors and, not incidentally, a powerful one for the hardworking insiders who stand to make $60-80+ million at buyout time. (It should be mentioned here that the Merchant Banker’s shares are also pooled and vaulted along with yours. Thus, they have a vested interest in your success.)
The Program Goal
I asked the man whose contacts and expertise created this expansion concept, what his overall goal was?
He said, “The premise is that everyone should win. The business consultants get their reasonable fees. The Merchant Bank gets its reasonable fee. The company gets enough money to ensure success. The Investors make a profit. The insiders profit in 5 years (or less) when the company is taken over by an Industry Giant. The public profits because the share price remains strong (no insider selling or unjustified dilution) and makes money from periodic upward moves in the share price.”
Four Risk Factors
And what about the risk factors? There are four of them to be considered, any one of which could stop the process.
1. The Dow collapses in the middle of the process. If no one is buying at the top, no one will buy at the bottom.
2. There is a material misstatement of fact in the client’s business plan. Both the Merchant Bank and the investors will do their due diligence, and should such misstatements be found, they will end the process at that point and any fees paid up until that time will be forfeited.
3. Loss of key personnel. This can, if not provided for, effectively stop your business in its tracks.
4. SEC denial of the NASD application. It should be mentioned, however, that as long as you meet all the requirements, and you will, this virtually never happens.
The Cost
Yes, I can hear the background question you’ve been asking all through this article. What’s it gonna cost me? The total cost will be under $200,000, or somewhere less than 1/10th of what such a normal process would be, with guaranteed success if your firm is accepted into the program. (The time? Two to three months.)
Step One
What’s the first step? If you feel your company can qualify, contact Capital Funds Group.
© 2005 Capital Funds Group
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