For any company that is public but is thinking about taking themselves private, please read this article.   The article was authored by Douglas Rogers, CEO of ManageSource Research.   I have known Douglas for several years, he is a straight shooter.  Mr. Rogers will perform a free analysis to determine if going private makes sense for your company.  His contact information is located at the end of the article.

Capturing Value when Going Private through a Spin-Off Reverse-Merger

ALERT:  WE HAVE IMMEDIATE BUYERS FOR YOUR PINKSHEET OR BULLETIN BOARD LISTED COMPANY.  IF YOU ARE CONSIDERING A GO-PRIVATE TRANSACTION, YOU MAY BE ABLE TO VEND OUT YOUR PUBLIC SHELL FOR A PREMIUM. CONTACT US TODAY FOR DETAILS.

Many small public companies are finding the value in taking their companies private for a variety of reasons. Many find that the cost to maintain ever-more-stringent reporting, filing and auditing requirements is prohibitive to growth and increasing value to shareholders.  Others feel that the enormous commitment of time and resources by executives and directors distract and preclude them from providing the leadership and stimulus necessary for growth.

Whatever the reason, increasing numbers of solid public companies are exploring the possibility of taking their organization private, while trying to understand the mechanisms at their disposal to do so, and the economic impact such a move is likely to have on their company, employees and stakeholders.

Although there are numerous mechanisms and means available to effect go-private transactions, the appropriate ones for you and your management team to consider will be predicated on your unique needs and overall corporate structure.  However, once element is clear: the public structure of your organization has significant value to other companies seeking to enter the public domain.

In effect, many companies are able to “vend” out the public structure to another viable new entity, and capture premium economic value during a go-private transaction.

A spin-off reverse merger is one such possible transaction that could enable public companies to eliminate their public regulatory requirements and take their fully intact operations private, while significantly reducing their investor base and receiving a cash premium to cover associated costs and increase operating capital, post-transaction.

What this means is that management and primary stakeholders now have the opportunity to offer the majority of their shareholders a renewed opportunity for value and growth, while enabling core stakeholders to realize a significant boost in operating efficiencies and profitability.

ManageSource Research, Inc.
A Registered Investment Advisor
Ph. 310/300.8485
F. 323/852.7157
Email: corporate@managesource.com
Web: http://www.managesource.com

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