| |
| |
|
Small Business Information |
|
|
|
Corporate Shells
A corporate shell could be liken to a house that had been occupied by a family, prior to the family moving out it was a home. But now it is just shell, a skeleton a plain house with nobody in it, but if a family was to purchase the house and moves in, it becomes a home. Similar, a corporate shell was once the home of an operating company but once the operating company ceases to reside there because of adverse circumstances ( bankruptcy or liquidation ) all that remains is the shell. Buying and selling corporate shells has become big business, just a couple of years ago a corporate shell sold for approximately $150,000.00 today they go for upward of $500.000.00. Talk about inflation! The increase in price is due to increase scrutiny by the Securities and exchange commission and the demand for shell by Chinese companies seeking to become listed in the United States. As usual when there is money to be made the vultures appear with their unscrupulous practices. In most cases the shells are own by the same operators who are also acting as consultants to the companies they are helping to become public. This may be a conflict of interest but they are able to hide their ownership well with the help of securities lawyer who may also have a piece of the shell. The situation described above creates a huge conflict of interest that the regulators have yet to figure out because of the intricacy of the many participant who work in harmony and are able to conceal their actions from the regulators. If the consultant indirectly own a shell and is trying to sell it to the company that they are advising, how well is he going to represent the client when it comes to price and the amount of shares that they are to Retain? And how about with assisting the company in performing the proper research on the shareholder list and the history of the shell. Don't get me wrong there are many honest and well meaning consultants and shell vendors who established the shells for the sole purpose of creating a vehicle for private companies to go public, Just like you have the unscrupulous characters that appear every time there is an opportunity to make money, you also have honest enterprising individual who see an opportunity and take advantage of it. Once the operating company purchases the corporate shell and merges into it, the owner of the private company receives a majority of the shell corporation stock (usually 90-95% ) through a new issue of stock for the private enterprise. The public corporation will normally change its name to the private company's name and elect a new Board of Directors which will appoint the officers of the company. The public corporation will usually have a base of shareholders sufficient to meet the requirements for listing on the Nasdaq Small Cap Market of Nasdaq Bulletin Board. Although some shell have as few as 35-50 shareholders and are currently listed on Bulletin Board or the NQB pink sheets. At our company we don't have an inventory of shells nor do we recommend a single vendor, instead we recommend several and after the private company selects a vendor we approach the process as if we were buying the shell for ourselves. For more information please visit our website: http://www.genesiscorporateadvisors.com Josephquinones@genesiscorporateadvisors.com Joseph D. Quinones, President of Genesis Corporate Advisors has spent over 25 years in the securities industry. In 1992 he founded JDQ Financial Group, Inc. and proceeded to build it up from a one man operation to the point where it employed many traders, advised numerous client and generate millions in revenues.
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Why The Carwash Industry is Stagnant; What You Can Do to Change Your Field Many years ago, I had warned the carwash industry of problems brewing in customer dissatisfaction as we continued to grow our car wash company into a National Franchise Chain. I warned of environmental controls, speed of wash, water usage, quality of labor, price points, car wash fundraisers, car damage, up selling and hot wax. Do I Have to Do EVERYTHING Myself?! The air in my client's office nearly crackled with her irritation. A scheduling snafu had left a client without important services. Mobile Truck Washing, Case Study Most folks in the pressure washing business are happier to do business cleaning concrete or flat work, because it appears to be easy. Some do both fleet truck washing and concrete, which makes sense. Small Business Security No Passing Fad How careful are you with the data you collect from your customers? How about the handling of money in your business. And passwords? What controls have you put in place to protect computer data?We don't often think about the security of our businesses, but we should. Provide Affordable Health Care To Employees At Little To No Cost To You You can provide affordable health care plans to your employees. If you feel overwhelmed by health care plan costs, you may be able to achieve far more than you believe. Pressure Washer Concrete Cleaning Equipment Cleaning concrete is tough and there is an easy way and a hard way. There is one thing you need to understand when you are pressure washer cleaning concrete; the concrete cannot always be made to look brand new again after it has been stained. Mobile Carwash; Senior Citizens and Mobile Homes Senior citizens are generally not a large marketing segment for mobile detailers or car washers, however, they should not be ignored. You will find in a near by area a seniors-only mobile home park. Avoiding the Small Business Cash Flow Roller Coaster A solopreneur I know disappears from my radar screen for weeks on end when she's actively engaged on a project for a client. During this time she is heads down, totally focused, and immersed in delivering her service to her current client. Grants vs. Contracts Commonly folks have asked me what the technical difference is between a contract and a grant. The difference is not about the dollar value or who the buying entity is nor the kind of work being done. Buying a Franchise Buying a franchise is not for everyone. This guide will help you evaluate whether buying a franchise is right for you. How to Avoid the Most Common Reasons for Small Business Failure The life cycle of the typical small business is short and painful. It starts out with a dream and ends with a whimper. Electronic Franchise Disclosure and E-Signature Future for Investors It has been discussed allowing Franchising companies to electronically disclose franchise documents to the public and prospective franchisees. If the Federal Trade Commission wants to make UFOC information available electronically through email to catch up with the newest technologies then it will get complaints and make up another rule saying no unsolicited UFOC maybe sent through email. Pressure Washing of Paving Equipment and The EPA Many pressure washing companies will be glad to take on additional work when a company calls them up to come and wash, but the days of cleaning asphalt compactors, steamrollers, paving equipment with diesel fuel are gone forever. If you are caught doing it the old fashioned way it's a $1,000 fines in the United States, fist offense and you pay for cleanup. How To Plant Seeds of Success With Small Business Ideas Think of all of your business ideas as tiny seeds that have the potential to germinate and grow into huge fruit bearing orchards! However, the proper steps must be taken; you can't scatter the seeds haphazardly on pavement and expect they will germinate. Growing a business is no different; it needs a fertile environment conducive to growth in order to germinate and thrive. How to Compete with the Big Guns?! Many small business startups fail within the first 2 years of existence. There are several different factors reason for the failure. Franchise Buyers Lying On Forms The Federal Trade Commission which governs the franchise industry thru the franchise rule, which enforces Franchise Disclosure laws seems to think that consumers need to be protected even when they lie. Often The FTC takes complaints from consumers who claim they had been ripped off or lied to from someone selling a Biz-OP or some corporation, which sells franchises. Get In Touch With Your Competition! We all know that competition is an ugly word but competitors are a fact of life in business. If your business can't compete with other businesses, don't start it. Getting Grant Funding For Your Nonprofit Organization Do you need grant funding for your nonprofit organization? If you do you are most certainly not alone in your needs. This combined with the fact that because of regular government budget cuts there's not as many federal dollars available as there once was. Cashing In Your Chips & Pastures New No, I'm not talking about gambling or dairy cows - although business is often referred to as a gamble, I'm referring to your exit strategy. That time when you decide to 'play no more' and go off and practise your golf swing. 3 Ways To Make Certain Your Business Fails Most small businesses incorporated in 2005 will fail by the year 2007. No matter the industry or the economic times in which the company was initially conceived, the fact remains that businesses fail on a daily basis due to general lack of knowledge and know-how.
|
| home | site map | Web directory | Pham Thanh Long | Luat su| Lawyer| Links |
| © 2006 |
