A straight sale occurs when the Seller is delivering a large majority of the outstanding common stock of the company to the Buyer.  These transactions are usually cash deals and are priced from $600K to $800K.  The higher the percentage delivered (usually 95% to 99%) the more the Shell costs.  This is the best deal for the Buyer and new investors because he has full control over the Shell.

The free trading shares that remain in the float are what the Buyer has to be cautious about.  Those free trading shares represent the small investors from the previous company (the Seller) and they will receive shares of the new company (the Buyer).  In most cases the new Buyer has reversed the shares back to the point that they do not pose any immediate threat to the Buyer if they are sold into the marketplace.  There are some caveats to this type of structure.  Sometimes the Seller has a large block of stock that he has retained through “friends and family” that can represent the major portion of the float.  Even after the Buyer has reversed the stock they still have a sizable block to sell.  If that happens, the Buyer must be aware that he may have to purchase the large block of stock when it hits the marketplace, thus adding additional cost to the purchase of the Shell.

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