Taking A Company Public Case Study

The owners of a small consumer electronics manufacturing company were interested in taking their company public.

The three owners had developed their company with financings from friends, family and several angel investors over the course of three years. They had discussed the possibility amongst themselves but needed a clear assessment on what options they had and would satisfy investors in the company and give them a substantial return on their investment while being fair to all parties involved.

Problem:

The owners had received conflicting information and advice from a number of sources. They understood that a publically traded company would give their investors and stakeholders an viable exit strategy and allow the Company to be financed for the next stage of their development. There were several significant issues between the owners on the value, business development, and ownership percentage.

Pinnacle Consulting Services Involvement:

Two of the owners contacted Pinnacle Consulting Services and after a brief discussion it was agreed that an Assessment and Advisory Report would be in order. Keystone's report was used by the owners to formalize their decision to become a public company and they hired Keystone to take them through the process.

Pinnacle Consulting Services Solution:

The owners were presented with a detailed plan for the steps necessary in the process. Keystone was also was involved in the negotiations with owners, investors and stakeholders so that the process would go smoothly. An SEC attorney was hired, an opening audit of the financials was begun, and a complete corporate audit was done by Keystone. Keystone oversaw the complete process of documents, corporate records, and filings, while continuously working with the owners and keeping them informed of the progress.

Results:

Over the process of a year the Company was able to file for a listing on a public exchange with the full knowledge and support of the owners. Upon approval of their listing as a public company the company began the next stage of their growth. Keystone's involvement allowed the owners to focus on their business and gain a better understanding of their responsibility of being corporate officers. Keystone continued to remain involved in an advisory capacity and help them achieve several significant financings over the years.