We Have Everything All Under One Roof!
A Direct Public Offering circumvents the Investment Banker and puts more cash in the company’s hands because they don’t have to pay commissions.
However, over the last 20 years we have found that successful Direct Public Offerings are few and far between. The successful Direct Private Offerings have sold their stock to large affinity groups that are organic. Moreover, many companies found that they just were not very good at selling stock.
Selling stock that is ‘free trading’ and ‘not restricted’ has put some uninformed companies at the mercy of ‘day traders’ and ‘pump and dump’ syndicates of stock manipulators.
The long and expensive process of doing a full S-1 prospectus offering is not the perfect antidote for every ‘cash starved’ company. A lot of information has to be obtained from the company by attorneys, accountants, auditors and other consultants.
Adding to the issues is the fact that once you file with SEC and registered, your ability to raise money privately is severely limited.
Did you reserve enough money to fund the company for the three or more months or so that it will take to get your initial public offering through the SEC?
You may find yourself running very low on funds.
Your marketing material is monitored and you can face legal issues if your offering documents and marketing material contain ‘misrepresentations’. You could face demands for ‘rescission’, or reversing the sale, which is tough to do, when you already have the money invested in corporate development.
Companies fall off the map in this process; and all the work and expense that went in to the Public Offer is lost forever.
When managed properly, an IPO can be a blessing, but if not managed properly it is hell for an enterprise even if formed with the best intentions.
Having ‘un-restricted’ stock is not always the quick cure for the struggling ‘cash starved’ company.
In Europe and Asia most stock exchanges require ‘Corporate Advisers’ to walk you through the process and keep you legitimate and listed. This helps Companies keep out of trouble, listed and successful.
The “Speed of Implementation” of an IPO is often a grossly overlooked economic factor. Three to five months of document preparation, and the information gathering and planning that is necessary to conduct a Public Offer can take its toll on management; and deplete precious human resources that could be allocated to constructive pursuits.
You need money in the bank to build a brand name and ramp up the core business fast! Time is money! How much do you have to waste? A private offer, which can be put in play in days, in concert with a public offer later, often might make the most sense for your company.
Do you have a sufficient affinity, or other group interested in buying your stock?
You will have to have sell 120% of the offering or more to have demand left over after the whole issue is placed to support the aftermarket.
Be that as it may, a well managed and planned Public Offer can include the manufacture of an affinity group that is built and nurtured. Does your Company have the resources to build and monitor websites and a host of social media pages that include; but are not limited to: Facebook, Linkedin, Pinterest, and others?
Can you deploy an arsenal of Social Media specialists to cover your articles and submit to blogs and directories? What about the ability to fully automate your marketing and adjust it to the demands of your affinity group?
At Direct Private Offers you are not just getting a listing on a funding portal. We prepare your offering documents, marketing material, and you are under the advisement of a Securities Attorney.
You are part of an entire automated marketing apparatus. We have everything all under one roof and we make it fast, and simple!