At time of acquisition of your company by an industry giant, all private company sellers who have sold their companies to our public company client, will benefit enormously by sale.

At time of acquisition of our public company client, private company owners used in our example and acquired before our client had US$20 million in revenues should see value of their 300,000 shares double to US$40/share and be worth US$12,000,000. For a private cash-producing asset valued at US$4,000,000, owners selling to our public company client will be effectively paid US$13,000,000 for something that was actually worth US$4,000,000

At time of acquisition of our public company client, private company owners who were acquired after our public company client had US$20 million in assets will see their shares double in value. Thus, any private company selling to our public company client will make more money than selling to a local private buyer.

Client Profits Should Be Source of Cash for Acquisitions

The reason that our clients are buying cash-producing assets is to use those profits to buy still more cash-producing assets, following successful CISCO system.

You must invest your profits to grow your company. The fact you can use your shares to leverage your profits doesn't reduce or eliminate need for profits.

It's a fact that companies make less profit in high tax countries rather than low tax countries. It's equally a fact that profits earned in any restricted currency have little demand outside country printing that currency. Thus, logic for tax planning that results in an after-tax 20% profit in any free-trading currency. And a key reason for non-US companies to take their companies public using US system.

The Multinational Advantage

As noted in my article Invest in Multinational Corporations, foreign investors in most countries receive massive incentives that offset at least 50% of costs of building local factories for exported products. For some of our clients, these incentive programs are worth tens of millions of dollars. If you wish to succeed powerfully in today's world, you must take advantage of multinational markets.

If You Have Money, You Don't Need Money

There is a saying in America that banks only lend money to businesses which don't need it. If you consider proposed balance sheet of your company once you pass US$20 million in revenues mark, you will find it easy to borrow money in Western countries. Borrowing money, to increase revenues well beyond cost of that money, makes sense.

There is never a shortage of investment capital. There is always a shortage of sensible Risk/Reward investments for that money. Any proposal that doesn't heavily rely upon risk capital is always more attractive to investors than one that is little more than a gamble with odds against investors.

To contact author: Visit Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

Keeping Your Float Private

Stopping American public shareholders from selling their shares (the float) in your public company is more difficult. I believe it can be done. You must eliminate your shareholders potential for loss. You must pay them to keep their shares. And, you must educate them to fact that their greatest profit will be realized when insiders sell their shares at time of company sale or merger with a larger company. If they know that insiders have agreed not to sell, they're far more likely to go along with program, too.

Your public shareholders can avoid loss by selling half of their position when public company's share price doubles over what they paid for their shares. The shareholder has his risk capital returned and now has a cost-free investment in your public company. His original risk capital is now available for another investment. If initial buyers of a stock do it, you have reduced float by 50% and Effective Float is half of float. If second group of buyers follow this practice, Effective Float is 25% of float. Your company has cut its Investor Relations costs by 75%. Those funds are, instead, available for further company expansion.

What Do You Offer Them?

Convincing your public shareholders to hold their shares requires that you pay them to do so. The cash dividends paid by major public companies are investor relations' costs to achieve this goal. Your smaller public company can't afford to do it since your profits need to be used to build your company. The solution is to pay your shareholders in tax-free benefits that meet their living needs. The VCP plan is to offer your registered shareholders a package of annual benefits worth about US$2,000. Thus your public shareholders are paid to keep their remaining shares in your company out of hands of DTC and to hold them until your insiders exit your company.

What's Your and Your Shareholder's Payoff?

M&A (Mergers and Acquisitions) announcement drive any public company's share price up. It's a fact recognized by anyone with any knowledge of Market. The benefit of M&A share price appreciation ensures that your insiders receive highest possible price for their shares. It ensures that your public shareholders maximize their profits by also getting highest possible price, too. Everyone wins when you bury your company's stock and build your company's balance sheet.

The combination of no downside risk, tax-free benefits and maximum potential profits are keys to burying any company's shares. Applying them to your public company means that you can have a strong and sustainable share price with reasonable Investor Relations costs. And you can hold your share price firm as long as it may take to achieve your exit strategy.

To contact author: Visit Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]