Exit Strategies for Public Companies

Written by William Cate


Continued from page 1

3. The insiders can groom their public company as a takeover target for an industry giant. Our spinoff test insiders are creating a multi-dollar share price to allow them to fund their company. The equity cash infusion will be converted into cash-producing business income. The strong share price will be used to acquire cash-producing assets. In five to seven years,repparttar company should have a hundred million dollars in assets. An industry giant will buyrepparttar 112484 public company based upon its share price. The insiders will retire multimillionaires.

The odds of arranging a merger are better thanrepparttar 112485 odds of creating an industry giant. It takes less than ten years to becomerepparttar 112486 perfect merger candidate. It usually takes over 20 years to become an industry giant. It makes sense to strive to be a merger candidate.

In ten years, a promoter can run about four "Pump & Dump" public companies. These promotions could earnrepparttar 112487 promoter about a half-million dollars. The promoter could create one real company and groom it as a merger candidate. In ten years,repparttar 112488 promoter can walk away as a multimillionaire.

The most profitable strategy in going public is to build a company and seek a friendly merger. It's this group of merger oriented entrepreneurs that I want to help.

To contactrepparttar 112489 author: Visitrepparttar 112490 Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visitrepparttar 112491 Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]



He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]


Venture Capitalists

Written by William Cate


Continued from page 1

It costs money to do a successful IPO. You'll find that those VC Financial Managers will divert your advertising budget into general advertising that acquaints potential stock buyers with your company. It doesn't botherrepparttar VC that none ofrepparttar 112483 potential stock buyers are buyers of your product or service. The axiom is that when investors recognizerepparttar 112484 name of your company, they'll buy your stock. It'srepparttar 112485 VC's stock, notrepparttar 112486 company's product or service that is being sold.

It costs money to do an IPO. That money comes from your company's cash flow. Until you receiverepparttar 112487 proceeds fromrepparttar 112488 IPO, you won't haverepparttar 112489 money to expand your business. Ifrepparttar 112490 cash flow isn't adequate to payrepparttar 112491 IPO costs, expectrepparttar 112492 VC to issue more stock and dilute your ownership further.

You can invest in a search to find a Venture Capitalist. I don't think your VC strategy is sound. You are betting againstrepparttar 112493 odds that you'll find a VC. If you find a VC, you'll lose control of your company. When your company goes public, you could find that your insider group owns less than 15% of your company's stock. If you think that a VC strategy is a winning strategy, I wish you luck.

To contactrepparttar 112494 author: Visitrepparttar 112495 Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visitrepparttar 112496 Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]



He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]


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