Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in the delisting of the public company. The majority of private equity investments consist of institutional investors and accredited investors. Private equity investments are usually coupled with a liquidity event such as an IPO or a buyout by a public company.
Strategic Planning usually starts prior to the client’s going public and continues through the closing. These services include:
- Working with its clients to insure a capitalization structure is in place that meets not only the company’s objectives and those of Wall Street investors, but also those of international and U.S. regulatory organizations.
- Areas of consideration for a proper capitalization structure prior to any reverse merger include but are not limited to: planned future acquisitions, APO and Follow-On capital raise, shareholder base and makeup, employee stock options and investor warrants, any many other issues.
- Financial Ventures Group develops a thorough understanding of the client’s company and their industry. We review the company’s operational and management capabilities and provide a report on what areas need to be addressed to ensure proper communication and reporting which are requirements of a company.
Reverse Take-Over (RTO) or Reverse Merger with an existing public company is the primary process for the initial public listing of private companies.
- The preparation of private companies prior to a reverse merger is extremely important. The client must have a strong growth strategy and long-term objectives that are attractive to the international investment communities.
- In a reverse merger, a private company merges with a public company with no assets or liabilities. By merging into such an entity, a private company becomes public. The private company will appoint and elect its management and Board of Directors.
An RTO is the first step to achieve an eventual U.S. national market listing (NASDAQ, AMEX or NYSE).
Financial Ventures Group has a vast network of strategic accredited and institutional investors. We utilize our own capital for seed or venture capital investments as well.
Capital is necessary for any small businesses or start-up firms. Venture capital funds are provided to companies, mostly during their infant stages, which have been deemed to possess long-term growth potential. This source of funding is especially important to companies that do not have access to the capital markets.
A large portion of venture capital stems from groups of high net worth investors, investment banks and other financial institutions. If your company is operating with a limited history of operations, this would be considered the most popular form of fund raising.