A
reverse merger is a method used by many small and mid-cap companies to
initially go public.
By: Joseph Quinones
Many business owner with a dream to take their company public
often neglect to prepare and plan for the future, very few small and
mid-size companies have a business plan.
A business plan is like a road map, and can be liken to when you
go on a journey sometimes you need to change direction, it doesn’t mean
your destination changes, you are just getting there via a different
route.
A vision is some thing that is birth in the mind and soul of the
individual, some people act on it and others procrastinate for a period
of time only to see someone else take their dream and bring it to
fruition.
The dream giver will only allow you to sit on your dream for so long
before giving it to someone else. You often hear people saying “ I had
that idea two or three years ago”, what good is an idea without taking
action, but with the action there must be a strategy.
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Businesses don’t plan to fail, they
fail because they fail to plan. Entrepreneurs usually are visionaries
who get an idea and run with it but, if you look at the successful ones
they always had a plan, and a team to help them bring their dream to the
market place.
The team can sometimes get you to the top, but it’s the strategy that
takes you over the top, so don’t settle for second best, be the best.
If you look at a twenty year chart of Microsoft Corporation, or Yahoo
Inc. You will find that at one time their stock traded under a dollar
but through brilliant strategies they were able to accomplished great
things.
Just like Bill Gates had a plan so must you develop one. Bill Gates also
had Paul Allen so must you find someone who can complement your weak
point. If you are not a good strategist go out and find yourself one who
is not a yes man.
The phrase “no man is an island” is most applicable in the corporate
environment, where team work is essential for success.
In small companies the dreamer is required at times to do everything and
become efficient in every task, which is beneficial because he should
know the functions of every department in the company. But he should
have competent personnel in those position in order for him to be able
to see the entire picture.
This is where being a public company comes in handy, it allow the
entrepreneur to use the company stock as an incentive to attract more
competent and better qualified personnel and retain them. It also makes
it possible for the company stock to be used for acquisition purposes.
Team work is essential in order to be able to succeed. I remember in the
1980's investing in a company the appear to have a dream team for it’s
management, everyone involved in management had a PHD and an ego to
match it. A friend of mine who was the investment banker for the company
related to me how he attended a meeting with the company and it was
complete chaos, each person appear to think that their opinion was the
only one deserving of consideration. Needless to say the company
eventually file for chapter eleven.
An entrepreneur must check his ego and keep it under control in order be
able to lead those around him, nobody likes to work with an egomaniac.
I believe that meetings can be useful or a waste of time, if all you do
at a meeting is inform the staff of what you are doing or what you would
like them to do, you are wasting valuable time that could be use to
implement the corporate strategy. This can be done with a memo.
In order for a meeting to be of some value it must include a free
exchange of ideas, a good leader seeks to know what those who are in the
corporate battle field think. Because they are the one who are in the
trenches, in a position to be able to hear what customers and employees
are thinking and saying.
A good advisory service can sometimes be beneficial to assist in the
evaluation of potential merger and acquisition candidates, to help
identify potential candidates for joint ventures, or investment. Also
helps with the due diligence process, the structuring of the transaction
and the development of corporate strategies for growth and investment.
A good advisory service will evaluate your company and advise you as to
the best way to go public, either traditional IPO, Reverse Merger or
Regulation D (504) offering.
Once the decision has been made on which method to use in going public
(for many small companies is either Reverse merger or Regulation D (504)
offering.) The consultant used, must be able to guide you through the
intricacies of the public arena. And have financial industry contacts.
Don’t sit on your dream waiting for the perfect situation because it may
never come, had Bill Gates waited until Microsoft’s public shares could
justify a higher price before going public, he might still be waiting.
Microsoft and Yahoo are not isolated situation but just two of many who
looked at the challenge and saw an opportunity. I guess the old saying “
faint hearts never won fair ladies “ is still apropos today.
For questions email:
josephquinones@genesiscorporateadvisors.com
About the Author:
Joseph Quinones, President of Genesis Corporate Advisors has spent over
25 years in the securities industry. In 1992 he founded JDQ Financial
Group, Inc. and proceeded to build it up from a one Man operation to the
point where it employed many traders, advised numerous client, and
generated millions in revenues.
http://www.genesiscorporateadvisors.com |
Source: www.isnare.com
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