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| Selling Your Company |
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| You may be thinking of selling
your company to gain liquidity for personal reasons or
as part of a broader corporate strategy. Amerigo can help.
We guide you through the process and provide the necessary
financial, due diligence and legal protection that is
required to insure your satisfaction with the transaction.
Amerigo will: |
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- Provide an internal due diligence process to prepare
for an eventual sale and to establish a realistic
valuation price before moving forward.
- Develop a marketing strategy tailored to your needs
and designed to maximize the value of your business.
- Prepare a confidential memorandum for distribution
to prospective purchasers and providers of capital.
- Work with Amerigo's database to pre-qualify and
screen the most motivated potential buyers.
- Actively manage all contact with prospective purchasers.
- Negotiate with and help select the final candidate
for the transaction.
- Close the transaction. Amerigo's professionals have
the experience to quickly employ tactics that can
resolve a wide range of business, legal and financial
issues.
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At Amerigo, our integrity,
teamwork and attention to detail characterize each engagement.
These qualities, when combined, provide a unique ability
to maximize the value of your company.
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| Advantages of
Going Public |
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- Facilitates stockholder diversification.
As a company grows and becomes more valuable, its
founders often have most of their wealth tied up in
the company. By selling some of their stock in a public
offering, the founders can diversify their holdings
and thereby reduce somewhat the riskiness of their
personal portfolios.
- Increases liquidity. The stock
of a closely held firm is illiquid - no ready market
exists for it. If one of the holders wants to sell
some shares to raise cash, it is hard to find potential
buyers, and even if a buyer is located, there is no
established price at which to complete the transaction.
These problems do not exist with publicly owned firms.
- Easier to raise new corporate cash.
If a privately-held company wants to raise cash by
a sale of new stock, it must either go to its existing
shareholders or shop around for other investors. This
can often be a difficult and sometimes impossible
process. Going public makes this process easier to
find investors for the business.
- Establishes a value for the firm.
This can be very useful in attracting key employees
with stock options because the underlying stocks have
a market value and a market for them to be traded
that allows for liquidity for them.
- Image. The image of your company
may be improved.
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| Disadvantages
of Going Public |
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- Cost of reporting. A publicly owned
company must file quarterly reports with the SEC and/or
various state officials. These reports can be costly
especially for very small firms.
- Disclosure. Management may not
like the idea of reporting operating data, because
such data will then be available to competitors.
- Self-dealings. The owners/managers
of closely-held companies have many opportunities
for self-transactions, although legal, which they
may not want to disclose to the public.
- Inactive market, low price. If
a firm is very small, and its shares are not traded
frequently, then its stock will not really be very
liquid and the market price may not be truly representative
of the stock's true value.
- Control. Owning less than 50% of
the control could lead to a loss of control for the
owners/management.
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| Amerigo
Corporate Finance Partners, LLC can assist
your company through the myriad of decisions as to whether
to take your company public. The option to "Go Public"
is not for everyone as it does have some serious disadvantages.
An alternative method that has fewer disadvantages if
all the requirements are met is a Private
Placement. If the answer is affirmative to
go public, Amerigo will provide consultation on all of
the necessary analysis, financial structuring and legal
protections to launch your initial public offering. |
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Feel free to checkout our
IPO Glossary.
BUSINESS PLANS OR EXECUTIVE SUMMARIES
We are always looking for new investment prospects.
If you feel you have an opportunity that would fit with
Amerigo´s approach and strategy, please submit
a business plan or executive summary to the below address
or electronically to:
LB@AmerigoPartners.com
Amerigo Corporate Finance Partners, LLC
20501 Ventura Blvd. Suite 270
Woodland Hills, CA 91364
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