What we do:

We plan and manage direct public offerings in the United States. Consider going public for any of the following reasons:

• Raise money from investors easier and with less dilution;
• Increase sales by providing equity incentives for sales, marketing and distribution;
• Pay for assets or entire companies with stock;
• Increases exposure and valuation for subsequent acquisition;
• Create wealth and long-term liquidity.

What is a direct public offering?

A Direct Public Offering (“DPO”) is an initial public offering (“IPO”) that does not require an investment banking firm. A direct public offering is a clean (not like a reverse merger), fast and inexpensive way to take any company public in the United States.

Requirements:

We have represented complete start-ups to companies generating millions in revenue. There are no specific revenue, income, asset or other requirements to qualify aside from satisfying local government regulations. Please note that each company going public in the United States must provide accurate and complete financial statements for stock exchange and/or government review. Those requiring to keep their financial results confidential should not consider going public in the United States.

Which India based companies are already public in the United States:

Infosys, Rediff.com, SIFY, HDFC Bank, ICICI Bank, Mahanagar Telephone Nigam, iGate Computer Systems, Dr. Reddy’s Laboratories, Sterlite Industries, Tata Communications, Tata Motors, Wipro, WNS Holdings, Silverline Technologies, Grasim Industries. While most of these companies are big, there are no revenue, income or asset requirements to qualify for your company to become listed. Most companies going public in the United States have less than $5 million in sales. Several of the companies we already took public had $0 (yes, zero) in sales. For a detailed explanation about why that can make business sense, please contact us!

Cost to go public:

A Bangalore company can become publicly traded for as low as US$80,000 plus shares, but the typical Bangalore client should budget about US$100,000 plus shares. Costs are dependent on the size and complexity of each business we take public. Larger companies will have higher accounting and audit fees. A more accurate estimate for your business can be provided after we speak. Some of our previous U.S. clients had the financial resources to pay the costs of going public, but others simply engage our services, obtain our assistance in structuring a private placement and then raise capital from friends and family to cover all the costs. A reverse merger is faster, but generally costs about $400,000 inclusive of shell, legal and accounting – not recommended!

Cost to remain public:

This depends on which exchange a company trades on. Those seeking the lowest level public listing do not have to follow many of the time consuming or expensive rules or regulations and can remain public for less than $20,000 per year. As the credibility of the exchange increases, so do the legal, accounting and compliance requirements. We have taken companies public who spend less than $50,000 per year to satisfy all of the requirements. A more accurate estimate for your business can be provided after we speak.

Raise capital:

While we do not raise capital for clients, we do have a growing list of accredited investors, investment bankers and licensed brokers who have expressed interest in evaluating our clients for financing after they become publicly traded. Your own contacts should be more interested in investing in your business if you have a path towards a return of their investment (e.g. liquidity) and a return of their investment (e.g. profit).

Are the benefits worth it:

We understand that going public is perhaps one of the most important business decisions you will ever make. Our typical client speaks with us numerous times to discuss the advantages, disadvantages, costs and timing; before making the right decision for them. Taking your company public can be the best business decision you ever make, or a waste of time and money. Despite our obvious conflict of interest, we will tell you exactly what we think. We don’t want to work with companies who make the wrong decision and are unhappy. In many cases, we recommend that businesses remain private.

We can help you:

Our partners have been involved in more than twenty direct public offerings, initial public offerings and reverse merger transactions. We are happy to answer all of your questions and participate in any stakeholder calls to ensure that key people have all the information necessary before deciding to remain private or to go public.

Special note:

Our founder is planning a trip to Mumbai, Hyderabad, Bangalore and Pune in early 2013 and is able to meet serious parties in person.

Call us at 516-509-8132 or email for more information.

Examples:
-> Secured notes paying interest rates ranging from 3.5% to 4.5% for 1st lien commercial real estate.
-> Secured notes paying interest rates ranging from 6% to 8% for 2nd lien commercial real estate.
-> Secured notes paying 10% to 12% to finance the sale of used automobiles.
-> Secured and unsecured notes paying 10% to 12% to finance supplies, inventory and account receivables.
-> Equity financing in small to medium size businesses that are planning to go public or are already publicly traded.
-> Registered stock in a growing company paying a 5.15% dividend.

Most of our clients conduct private placement offerings to accredited investors but some also conduct public offerings after SEC registration. If you are interested in secured lending (high yield debt), real estate investments, auto vehicle financing or providing equity financing for companies before they go public or in small secondary offerings, we can provide you with direct access to our clients for your due diligence to determine whether there is a fit for you or your clients.

Note: We are not licensed by FINRA nor do we have an exemption from licensing. We do not earn a commission (directly or indirectly) as a finder nor as a broker. We are not involved in any financing discussions (unless it pertains to transactions where we are the principals). Instead, we seek accredited investors and their licensed advisers who are interested in the type of financing our clients require. This blog post should not be construed as an offer to sell nor a solicitation for you to buy any securities of any business. Please consult with your accountants, lawyers, tax advisers and investment advisers before investing in anything!

Call: 516-509-8132 or email for more information.

Are you a financial planner, registered investment adviser or FINRA licensed professional whose clients desire income and/or growth investments? Our clients are often interested in secured debt (commercial real estate, vehicle financing, etc.), unsecured debt (inventory, accounts receivable, etc.) and equity capital (private placement, public offering, etc.). Typically, our clients seek $100,000 to $3,000,000.

Recently:
-> 1st lien commercial real estate transactions have been at yields ranging from 3.5% to 4.5%.
-> 2nd lien commercial real estate transactions have been at yields ranging from 6% to 8%.
-> vehicle finance transactions have been at yields ranging from 10% to 12% (secured).
-> inventory and accounts receivable transactions have been at yields ranging from 10% to 12% (unsecured/secured).
-> equity capital transactions ($100k to $1m in size) have been priced at valuations ranging from $1m to $6m.
-> block of registered stock with P/E of 17x in profitable and rapidly growing company was priced at 5.15% yield (still available as of 8/28/12).

Some of the offerings are offered on a private basis to accredited investors and others are offered via SEC registered offerings. If you are interested in these types of transactions, we can provide you with direct access to our clients for your due diligence to determine whether there is a fit for you or your clients.

Note: We are not licensed by FINRA nor do we have an exemption from licensing. We do not earn a commission (directly or indirectly) as a finder nor as a broker. We are not involved in any financing discussions (unless it pertains to transactions where we are the principals). Instead, we seek licensed professionals who are interested in the type of financing our clients require. Our clients are not interested in equity lines of credit nor any other equity transactions which are not based on a fixed equity price.

Call 516-509-8132 or email if interested.

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Did you know that a company can complete a direct public offering for as low as $40,000? Contact Us.

Did you know that a company can complete a direct public offering for as low as $40,000? Contact Us.

Did you know that a company can complete a direct public offering for as low as $40,000? Contact Us.

Did you know that a company can complete a direct public offering for as low as $40,000? Contact Us.

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If you are an investor in pre-ipo companies or seeking to take your company public, please contact us!

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If you are an investor in pre-ipo companies or seeking to take your company public, please contact us!

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If you are an investor in pre-ipo companies or seeking to take your company public, please contact us!