Take Your Company Public and Have Investors Begging You To Take Their Money

Feb 09, 10 Take Your Company Public and Have Investors Begging You To Take Their Money
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by James Scott

In these gloomy times, businesses are looking outside the box for a localized injection of economic stimulus.  Banks are hording their bags of government bailout money while the small business owner is forced to fend for themselves.  Nothing but doom and gloom seem to infest all present and near future financial forecasts.

However, there an investment niche being carved out as we speak by ultra aggressive and eager angel investors .  Angel investors, private investors, micro-ticket investment partnerships, and other alternative financing groups are spearheading a global rally to buy into promising mid-size companies from all industries.  The elements of a viable company prime for investment are solid and realistic growth
potential, talented ‘who’s who’ executive staff with the right educational and professional pedigrees, minimal debt, a solid business plan laying out every minute detail that could affect growth, financial return, and the exit strategy.

Another crucial element that is often overlooked, but is a mandatory prerequisite for the SEC regulated exchange of cash for equity, is a Private Placement Memorandum.  A Private Placement Memorandum takes advantage of three powerful Regulation D Rule exemptions (Rule 504, Rule 505, and Rule 506).  These technical documents spill the beans to the potential investor.  In a PPM, all the financial and industry risks are put on the table as well as stock prices, a breakdown of fund raising benchmarks, what the money will be used for, among many other important considerations.

A Private Placement Memorandum can be costly if you hire a law firm to custom author the package for you.  Yet, there are consulting firms that will do this for as little as $4500.

If you are serious about raising money for your company, you need to add a Private Placement Memorandum to your list of necessary documents so that you easily inform investors in order to get the cash you need in an expedient manner.

Want to find out more about Private Placement Memorandums, then visit Princeton Corporate Solutions site on how to choose the best Offering Memorandum for your needs.

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