CEO frequently calls and asks me what income and net income should be before going public, they qualify private companies to become public companies Magic Nang
It's tough. :
Pink sheet, 15c 211, reverse merger, direct public offering, regulation d
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CEO frequently calls and asks me what income and net income should be before going public, they qualify private companies to become public companies Magic Nang
There is no set amount of income or net income required to publish your company.
The short answer is when you don't need or when your company is not looking for a loan to survive desperately.
Instead, you are looking for capital to finance growth and expansion, or you want to use public shares as a currency to make an acquisition
But life is not always perfect, so we look at some of the questions asked by the CEO and call it I am going to publish.
What Should Revenue And Net Profit Be Published Before Publishing? The company probably has five consecutive years of profitability and could be a bad candidate for going public.
I recently got the CEO to call me from such a company, but the income and net income was the same for the previous five years, but today with Nasdaq BB and Pink Sheet
However, I did not see any growth in income or net income or signs that I do not know where future growth will come from.
I told him he should not be public if he was public so he could tell his friends that he is the CEO of a public company.
However, he developed a strategy for growth, and together he could put out an outline business plan how he was going to grow income and net income
The opposite has lost money for five years, but exhibits annual income growth and makes the company a small loss.
The company has business plans and goals for business expansion, meets those goals each year, and making it public is part of the business strategy. So what is a company that has the great potential of being a successful public company?
Investors are always looking for growth candidates to put their money. So they go in a company that has the potential to make the most money for them in the future.
Another situation I come across often is a CEO who wants to publish and does not have money for audits or lawyers expenses.
The specific costs associated with going public need to be paid. These CEOs often want to do the reverse merger because it is the fastest way to be published, but the published shell is expensive and will be published
When private companies buy a public shell, the buyer's thorough due diligence of the public shell to make sure that it is clean
Due diligence processes are often ignored because private companies are not familiar with public places in and out.
So they often follow the advice given by the owner of the shell and follow his request. Companies regrettable that there are a lot of things that are open to the public, it will be very expensive to cut short. I always give CEOs who call an alternative to reverse mergers, such as direct public offering, regulatory D or IPO, but if their mind is already configured, or
I will try and do everything I can to make it work, but the CEO warns of the danger ahead and how to prepare for them He has been issued with many shareholders For example, if you have a lot of shares, he has available shares for sale, including those owned by the owner of the shell
Shell owners often make big mistakes when they agree with this demand, they conclude the deal not to reverse the shares before selling
Also if the company hires a investor relationship company to do the PR work and pays them in stock they will temporarily hold the company share while the IR is throwing out shares
The IR company is careful and just has to check out the stock chart of the client just by having to check completely by asking the name of the previous and current client, and share
There is no such thing as a perfect time to publish, and if you're starting early, start by auditing your financials. This should do something, so if you go along, you won't have a big expense all at once.
If you have a business plan prepared, it is a mirror of your vision and reflects your vision of strategy, your ideals and what you are going to work
Make sure your business plan is sound and flexible. A business plan is like a road map, it has a destination at the departure point, you want to go but sometimes you need to take another route
Make sure you have talented talented people in the right position where the small company is not a place for professionals, you multita
Remember that everyone knows your business like you, but you need to apply not only to follow certain business principles but also to apply
If you just do the golden-rule "The other easy thing to do". I will always ask you a question.
You have to be smart in the choice of people to deal with. There are many unscrupulous characters in the public selling shellfish and consulting business that go without being ready.
They can also sell corporate shells and do something else, call a legal consultant to help you before you know
I recently had a nice little company, but he had a phone call from the CEO who needs capital to raise business growth, the company every quarter
I need him to do a reverse split before I can go to my fundraising people, because I don't put money in a company where no one is so diluted He Shell Said they could not reverse the shares in the contract with the owner of.
When you buy a shell, make sure you are buying the whole flow.
Otherwise, choose another way to publish. Reverse mergers are not the only way to publish.
The action is the other option in advance, when there are people for at least the option of reverse mergers. The time you look for someone else if the consultant you hire probably knows the reverse merger. It's not a perfect time to publish your company, it should be part of every business strategy and vision on you, it will do the job
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