Frequently Asked Questions
-
What does Meraki mean?
The Greek word "meraki" (pronounced meh-rah-kee) is an adjective that embodies the idea of putting soul, creativity, love, and passion into everything you do.
-
Who is your ideal client?
Our ideal client is a smart, growth-focused, and highly capable entrepreneur leading a profitable business poised for expansion.
While we have worked with earlier-stage companies, our primary focus is on established, profitable businesses ready to scale.
If you don’t meet every criterion but believe your team, business model, and access to capital position you for success, feel free to reach out—we’d love to explore the possibilities.
-
Do you handle everything?
We develop the public listing strategy based on our clients' unique facts and circumstances, bring in all third-party professionals (accounting, audit, legal, etc.), advise clients through the process and manage everything on their behalf. We are the "CEO" of the initial public offering, direct listing or reverse merger.
We also provide strategic advice on business growth, acquisitions, financing, corporate communications, and more.
We handle everything except raising capital, but we can point you in the right direction for that too!
It's important to have a very experienced advisor to help you navigate the steps required for a private company to become publicly traded. Our team has facilitated many public listings that helped CEOs create more than $10 billion in shareholder value.
-
How much capital can be raised?
For direct listings and reverse mergers, entrepreneurs have the opportunity to raise millions of dollars through their personal and professional networks, as well as through general advertising.
For initial public offerings, investment bankers can secure substantial funding, depending on the business and market conditions.
As consultants, we do not raise capital directly. However, we regularly connect companies pursuing a direct public offering with advertising agencies and introduce investment banking firms to clients positioned for a successful IPO.
-
What does everything cost?
Third-party costs to complete a direct listing, reverse merger or IPO largely depend on the accounting, audit and legal expenses which varies based on many factors.
Typical third-party fees for an early-stage company are about $200,000 to $250,000, largely based on accounting and audit fees. You do not need this upfront! The total cash cost can be raised from people in your personal and professional networks via private placement at the start of the process.
Larger companies should budget $350,000 to $400,000 for a direct listing, and more for a reverse merger or IPO. Again, these fees can be paid from capital raised via private placement and are not needed upfront. However, it generally costs $20,000 to start the process.
Our collaboration model involves taking an equity stake in the companies we accelerate, aligning our interests with your success. We also charge a monthly fee for our comprehensive services, which include tailored and proactive support for going public, expert guidance, strategic advice and access to our professional network.
As a result, we only engage with companies when we believe our process and strategies will help an entrepreneur build a larger and significantly more valuable business.
-
What is a direct listing?
We specialize in a form of direct listing that allows companies of any size to list their shares in the United States. This process follows the same steps used by larger companies for a traditional IPO, but without the need for an investment banker.
-
What is an IPO?
The process to complete an IPO involves preparing financial statements, having them audited by a qualified auditor, preparing a comprehensive set of business disclosures, combining everything into a prospectus, filing with the Securities and Exchange Commission, answering all of their questions, applying to trade on NASDAQ or NYSE, and when ready, an investment banking firm sells shares to their clients in the actual "Initial Public Offering."
-
What is a reverse merger?
A reverse merger occurs when a private company becomes public by merging with an already publicly traded company, taking control of the board, management, and business.
Throughout the process, the private company must provide the same level of business and financial transparency required for a direct listing or IPO.
While a reverse merger allows a company to go public more quickly, it comes with a unique set of disadvantages.
-
Which stock exchange would my company trade on?
Companies that complete an initial public offering will trade on the New York Stock Exchange or NASDAQ.
Companies that complete a direct listing or reverse merger typically trade on the OTC QB or OTCID and upgrade to a senior stock exchange whenever they qualify.
-
Who determines my valuation?
Who determines my valuation?
Our managing member was previously a partner at a 700+ person investment banking firm and an analyst at two asset management firms. He has conducted research, analysis, and evaluations on a wide variety of companies.
With enough information about your business, he can provide a recommended valuation range for your company. However, the final valuation in a direct listing or reverse merger is determined by the entrepreneur. In the case of an initial public offering, the investment bankers determine the valuation.
-
Will investors kick me out of my own company?
You’ve been watching too many movies. Entrepreneurs and executive management are generally removed only if they engage in criminal, unethical or immoral behavior.
When investors are upset when management teams fail to deliver the promised performance, they typically just sell their stock rather than spend the time, money and headaches required to try and remove founders or management.
-
How did you start helping entrepreneurs go public?
In 1999, our founder started a software company and promised investors he would take the company public. However, he faced significant challenges as there were no advisors, law firms, or investment bankers willing to assist his startup in going public.
Despite the difficulties, he successfully took his first company public through a direct listing. Within a few years, he took three more companies public. Today, we help CEOs complete initial public offerings, direct listings, and reverse mergers.
-
What are the requirements for a company to go public?
There is no minimal amount of revenue or profitability required to become publicly traded. We've successfully taken several companies public with $0 in revenue. However, just because it's possible doesn't mean it makes sense.
When a company is not presently profitable, the entrepreneur needs to evaluate how they will finance operations until they become profitable.
Companies with meaningful traction could attract an investment banker to raise capital in an IPO but all others would need to tap into their personal and professional networks before raising capital from others.
-
What are the requirements for a company to IPO?
A company can pursue an IPO if it meets the regulations regarding financial statements and business transparency, and has an investment banker willing to help raise capital.
Very few companies qualify for an IPO because the team needs to be prepared, the business must be appealing, and there needs to be investor interest in funding.
However, any company can consider a direct listing or reverse merger.