INCREASE YOUR BUSINESS VALUATION BY DIRECT LISTING
- January 29, 2021
- Posted by: Marek Niedzwiedz, Your CFO
- Category: Raising Capital 4 eCommerce
DIRECT LISTING – unlock the capability to increase your eCommerce business valuation by 10x or more.Use shares to grow your business by acquisitions, to recruit talent, raise capital and create significant wealth.I help entrepreneurs to unlock this capability by taking their companies public through a process called Direct Listing.
Direct Listing is when a private company, e.g. an eCommerce business, becomes listed on a stock exchange, without an investment banking firm. Direct Listing is perfect for companies that are currently too small to attract interest from investment bankers.
Do you qualify to go public?
Yes. Any size company, in any sector and from any country, can go public with us. It is essential, though, to understand the advantages and disadvantages before pursuing the Direct Listing. Please reach out to me if you want to know more about the process.
Which stock exchange to choose?
I work with the US markets such as NYSE, NASDAQ, OTC, and Canadian TSX.My team and I plan and manage every aspect of the process, including identifying and supervising all service professionals, including accounting, audit, legal and others.
How long does the process of Direct Listing take?
The entire process typically takes about 9 months from start to trading.
Our team has been involved in initial public offerings that enabled entrepreneurs to raise $250+ million in capital, complete $100+ million in acquisitions and employ 15,000+ people. Our team is now your team.
Reach out to me to discuss what options may be available for you.
Public companies advantages
The main reason private companies go public is to create significant long-term wealth for their management, shareholders and investors. Public companies are typically valued at more than twice their private company valuation. Being publicly listed can be a fantastic tool to raise capital, recruit and reward key talent, complete acquisitions and gain more industry attention. It is a great tool for maximising shareholder value and creating significant long-term wealth.
Public companies are able to complete acquisitions more easily since they can use stock in lieu of cash consideration, can raise debt or equity financing quickly, can close acquisitions faster and often have a higher level of credibility in the eye of target company management and their investors.
Public companies can offer management, key personnel and other employees shares and stock options, which are incredibly effective at attracting, retaining and rewarding key employees and partners.
Public companies can tap into a larger pool of potential investment capital. Most investors prefer investing in public companies because they provide periodic financial statements, update shareholders on material events and offer higher levels of investment liquidity with very low transaction cost.
Public companies and their key management tend to secure more media coverage for press releases and interviews and are generally viewed as being more credible participants in their industry.
One of the main reasons private companies seek a public listing is to provide their existing and future shareholders with a market by which they can sell shares. It can help with succession, retirement or exit.
Business risk is reduced since public companies can more quickly and easily raise capital and recruit top talent.
What does Direct Listing cost?
The total cost of the process will vary based on several factors, including the size and complexity of your business. Once we know more about your business, we can provide a reasonably accurate quote before starting the process. Generally, the total third-party costs will be between $125,000 and $175,000, all of which can be paid by the business or raised by its officers/directors. In addition to leveraging their relationships (friends, family & business network), companies are also able to leverage a wide range of online and offline advertising.In addition to the third-party fees, we charge about $250,000 paid upon achieving specific milestones during the process. If your business is already profitable, we may propose an engagement where our fee is paid entirely in shares.