The Isolated Offering, Vol 9, Issue 11
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The Isolated Offering
A Newsletter of The Lebrecht Group, APLC
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| November 10, 2009 |
Volume 09, Number 11
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| In This Issue
Planning on Going Public in Less Than Ideal Economic Times? – Consider an IFIPO Preparing Your Company for the Audit More Rule 144 Resales – A Practical Outline 5 Tips to Maintain a Strong Stock Price How to Raise Money for your Company View LinkedIn Profile for Craig V. Butler, Esq. Contact Us http://www.thelebrechtgroup.com 9900 Research Drive 406 W. South Jordan Parkway
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Planning on Going Public in Less Than Ideal Economic Times? – Consider an IFIPOLets face it, going public when the markets are booming is easy. Investment bankers are around every corner willing to underwrite your initial public offering so long as the name ends in “.com” (or whatever the next fad will be). However, for the time being and for the foreseeable future, underwritten initial public offerings are a thing of the past for all but the largest of companies. And although the economy should show steady improvement over the long run, it will likely be years before we see anything approaching booming markets, at least those booming enough to support underwritten IPOs for small-to-medium sized companies. So what do you do if you are a fundamentally-strong small-to-medium size company that wishes to go public? For years the answer was either a reverse-merger with an already publicly-listed company or self-funding your own initial public offering. However, the latest trend is an IFIPO. This article discusses the basics and answers many of the frequently asked questions. What is an IFIPO? IFIPO stands for “Investor Funded Initial Public Offering” and basically entails raising money from outside investors to pay (and otherwise provide) for the requirements to get from a private company to a public company, including audit, registration statement, 15c2-11, etc. The concept is not new, it is merely a twist on a self-funding IPO; however, the method and contacts developed by The Lebrecht Group have created a unique, streamlined process to achieve the IPO result. This process has been labeled an IFIPO. How does an IFIPO work? For companies that qualify (see below) the initial step is to contact The Lebrecht Group regarding your company’s desire to potentially go public through an IFIPO. We will review the basics of your company (business plan, financial statements, market segment, etc.) and conduct an initial screening telephone call with management to determine if your company meets the minimum criteria. If so, …[more] Preparing Your Company for the AuditJB Henriksen, CPA - CFO Solutions, LLC So, your company has grown enough that you need to get a substantial line of credit or equipment financing or you are taking on new investment. All of these could be reasons for you to “need” to have an audit done. Banks and investors will normally require an audit. If you are looking to go public, you need to have 3 years of audited financials. One of the biggest stumbling blocks for companies seeking funding is the time and money it takes to get an audit completed, especially if they are not prepared for an audit. Usually, it is best for you to prepare to be audited from the beginning. Your business should already be ready for an audit. Just because you haven’t “needed” an audit, is no excuse for not having your financial house in order and doing things right. Doing things right will lead to more control and better information. Better information leads to better decisions, which will lead to higher profits and eventually a higher valuation. You have to have your financial house in order when you look for investment or a sale in order to maximize your valuation. If you are going to get an audit, you are going to pay an outside CPA firm to audit your financial house and your goal is to get an “unqualified opinion”, sometimes called a “clean opinion”. Simply put, this means that the auditors audit your books and find nothing that will make investors uncomfortable about the numbers (nothing “materially misstated” in audit speak). So, what steps do you need to take in order to be prepared for your audit…[more] |
