Saturday, October 20, 2012

Taking Your Company Public and How To Stay Public On The OTC

Our firm specializes in regional economic rebound as well as corporate turnaround and with each domain there are aspects that have become boilerplate to our overall strategy though each project has its own customized tweaks that cater to diagnosing the issue and rather than numb the symptom we will get to the root of the challenges that stunt stability and success and formulate strategies that are based off of the strengths of an organization or proximity while resolving that which is absent with solutions based tactical concepts that rapidly rejuvenate and self-perpetuate ongoing growth and profitability. Below is a basic layout of the general 'rule of thumb' template that we apply to any organization within the corporate 'publicly traded' genre and from here we create a 'solutions wrap' that is customized to each individual public vehicle or organization.

Corporate strategy is an amalgamation of ambitious yet responsible creativity drawing from academic calculation and tried and tested knowhow that is applicable to the industry and current environment in which the entity exists. For public companies longevity begins with the innovation, vision and alliances brought to the table by the CEO. Founders should rarely be considered as viable 'C' level candidates as a professional executive with extensive 'in the trenches' pedigree, battle wounds and emotional callouses are a necessity to absorb the swings of the public market place. Tactful response to the drama and negativity that will almost certainly interrupt steady progress is a must and a calm demeanor with a crisis management strategy ready for instant implementation will demonstrate to shareholders that a solid command is at the helm of the company to minimize stock dump or overly emotional liquidation based off of hype rather than fact.

Public companies will function within the business model of their particular industry category but this will only, at best, temporarily stabilize the structure while the realities of global economic uncertainty will hold its globalization, scalability and market share hostage to mediocrity. The existence of a corporation under the delusional philosophy that a company can prosper via net revenues generated by the fickle nature of in-house sales alone will quickly be stamped out by a strategically managed competing entity poised for optimal globalization and diversified profit centers that are not exclusive to one singular target market or geography.

(Note: With public mergers or shell mergers, asset injection in the form of outside equities and hard assets minus encumbered hindrances must be within the initial 6 to 12 month window initiated at the onset of the takeover. If you are the new majority equity holder in a public entity with the goal of turning the organization around a 'dividend' strategy will assist in pre-merger investor retention and support.)

Organic growth is no longer a reality for microcap or international commerce figureheads as growth through acquisition and subsidiary merger is the surest way to appropriately expand a company with properly implemented diversification as a protectorate against major industry dips or competitor roll up making a global giant out of a collection of similar corporate concept organizations beneath the umbrella of one unified super-corporation that will ensure the demise of any unprepared entity.

A publicly traded company, for stock price and volume volatility control, outside of the obvious focus on product/services/brand development, should by default automatically evolve as a holdings company within its particular industry subsector and stand out as a corporation that is on the bleeding edge of development with special attention to promoting unity within their industry beneath the beacon of their leadership. A merger/incubation program for solid, profitable yet management lacking organizations is a minimal prerequisite for a public company with the goal of transparency and longevity. A strategy of this nature can easily expand into an automatic investor dividend solution using a spinout model.

The basic 'rule of thumb' formula for a public company will start with the basics below: - Solid leadership (C level, board, advisory, legal, third party accounting oversight for spot audit and accounting principles etc.) - Multipronged crisis management and publicity strategies for proper information distribution - Investor relations both in-house and outside consultancy for proper investor communication and reputation management from the company to the marketplace - Business broker relationships for M and A identification, negotiation assistance and legwork (industry standard commissions will typically minimize salary overhead) - Strategic alliances to help shoulder the burden of cost associated with expedited expansion - Scalability templates and processes should be customized to achieve new market entry at a more rapid while simultaneously streamlined manner - At the forefront of the corporate leader's mind one must respect the day trader and long-term investment buyer as this is the individual that will make your growth and vision a reality, therefore at the end of the day quarterly and annual reports must be handled with the utmost integrity and white gloves as the unforgiving mob mentality of shareholders will lose patience with a management team that takes their support for granted "the shareholder is king".

Attention New CEO: "There will always be the continuously negative and the bias naysayer but a true corporate leader will see the value in this and take the opportunity to create an environment that contributes to the comfort ability of niche buyers that assist in overall daily trade volume and stock price rebound. Shareholders will love you, they will hate you, they will blame you, praise you and when you get positive press they will most likely say you wrote it yourself or the information is tainted but a business model seasoned with the above will enable haters to vent while the stock price grows and strengthens. Don't fall for the emotionally draining ups and downs of public opinion. Do your job. Keep your nose to the grindstone, manage your strategy, make use of proper counsel and communicate via transparency with shareholders and in combination with the starting point strategy above growth will be an automatic byproduct of your business model."

James Scott is the CEO of Princeton Corporate Solutions, a corporate globalization and political strategies firm, PCS offers a unique blend of think tank, corporate and governmental communication strategies to expedite the facilitation of long lasting relationship building in these necessary sectors.

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