American Capital Investments LLC, Inc. is a
consulting company advising companies in the process of going public,
preparation for raising capital, and assisting in post-public exposure
to the financial markets and the media. Securities attorneys complete
all appropriate filings and transactions.
Services for private companies going public include:
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FINRA Filings
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Business Plans
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Due Diligence
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Corporate Consulting
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Reg. Offerings
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Mergers Investments Acquisitions
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AMEX/FINRA Correspondence
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Broker Dealer Introductions
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Document Preparation
How long does it take to go public?
The process can be demanding, but assuming the
client company provides all the necessary information, audited financial
statements, and obtains approval of its Board of Directors promptly;
you may expect to be trading in 90 to 120 days after execution of the
agreement.
Methods of Going Public
Reverse Merger
This is a method by which a private company
merges with a public company with no assets or liabilities. The publicly
traded corporation is called a public shell since all that exists is
its corporate structure. By merging into a public shell a private
company becomes public. The private company merges into a public company
and obtains the majority of its stock (usually % is negotiated between
the private company directors and the public shell owners). The private
company normally will change the name of the public corporation (often
to its own name) and apply for a new symbol that matches the new name.
This process usually takes about 30 days providing there are no delays
in the negotiation process between the two entities.
Advantages Of Going Public The advantages of public trading status, which
are outlined in greater detail below, notably include the possibility of
commanding a higher price for a later offering of the company's
securities. Going public through an S1 registration or reverse merger
allows a private company to go public typically at a lesser cost and
with less stock dilution than through an initial public offering (IPO).
While the process of going public and raising capital is combined in an
IPO, in a registration or reverse merger these two functions are
unbundled; a company can go public without raising additional capital.
The private company going public obtains the benefits of publicly
trading its securities:
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Increased liquidity of the ownership shares of the company
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Higher share price and thus higher company valuation
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Greater access to the capital markets through the possibility of a
future stock offering
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The ability of the company to make acquisitions of other companies using
the company's stock
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The ability to use stock incentive plans to attract and retain key
employees
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Going public can be part of a retirement strategy for business owners
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The costs are significantly less than the costs required for an initial
public offering
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The time is considerably less than that for an IPO
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Additional risk is involved in an IPO in that the IPO may be withdrawn
due to an unstable market condition even after most of the
up-front-costs have been expended
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IPOs generally require greater attention from top management while an
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IPO requires a relatively long and stable earnings history; the lack of
an earnings history does not normally keep a privately-held company from
completing a reverse merger
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There is less dilution of ownership control
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The company does not require an underwriter
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You will receive a higher valuation for your company
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