Comments on: The Instant IPO http://7million7years.com/2009/09/03/the-instant-ipo/ How to make 7 million in 7 years ... Wed, 08 Feb 2012 08:33:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Adrian http://7million7years.com/2009/09/03/the-instant-ipo/comment-page-1/#comment-3492 Adrian Fri, 04 Sep 2009 06:16:49 +0000 http://7million7years.com/?p=3004#comment-3492 @ Modder - No, it's not easy ... but, I dare say, easier than the 'hermit crab' reverse IPO that you mentioned. I was happy with the result that I got, and my second such deal took 4 weeks from 1st visit to cash in the bank ... truly! :) @ Modder – No, it’s not easy … but, I dare say, easier than the ‘hermit crab’ reverse IPO that you mentioned. I was happy with the result that I got, and my second such deal took 4 weeks from 1st visit to cash in the bank … truly! :)

]]> By: Modder http://7million7years.com/2009/09/03/the-instant-ipo/comment-page-1/#comment-3490 Modder Fri, 04 Sep 2009 02:30:32 +0000 http://7million7years.com/?p=3004#comment-3490 You make this sound so easy :) Getting acquired is actually difficult. Getting a fair price, even more so. If really want to do a a quick & dirty IPO, I guess a reverse-merger pink sheet IPO is the way to go. In that method, you find a public company that is just about dead (but public, usually a penny stock traded on pink sheets). Then you merge your private company with the half-dead shell company. You take on a publicly traded shell like a hermit crab moving into a coke can. Then over time as stock value increases you graduate from pink sheets to more respectable trading forums. There are a plethora of bankers, shady and not so shady, who help finagle deals as above on a regular basis. Will you capture a PE ratio uptick from 4 to 12? No, but you will improve your ratio regardless. Given minimum legal & accounting costs you face as a public company, you need at least $10M in revenue for this to make sense if I remember correctly. You make this sound so easy :)

Getting acquired is actually difficult. Getting a fair price, even more so.

If really want to do a a quick & dirty IPO, I guess a reverse-merger pink sheet IPO is the way to go.

In that method, you find a public company that is just about dead (but public, usually a penny stock traded on pink sheets). Then you merge your private company with the half-dead shell company. You take on a publicly traded shell like a hermit crab moving into a coke can. Then over time as stock value increases you graduate from pink sheets to more respectable trading forums.

There are a plethora of bankers, shady and not so shady, who help finagle deals as above on a regular basis.

Will you capture a PE ratio uptick from 4 to 12? No, but you will improve your ratio regardless. Given minimum legal & accounting costs you face as a public company, you need at least $10M in revenue for this to make sense if I remember correctly.

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