| Seriously, sometimes I have to step back and laugh | | | | firm it's more important to find out how vast their |
| when I see company owners trying to pre qualify | | | | network is as opposed to being the predictable |
| consulting firms to take them public. I just stand | | | | intellectual midget who will look up the consultants |
| there and scratch my head in disbelief when they | | | | previous stock symbols and call the company and |
| think they are asking all the 'right' questions when all | | | | expect to miraculously get on the phone with a |
| they are doing is setting themselves up for failure. | | | | person who knows the consultant first hand. The |
| I recently had a company who claimed to have | | | | mere thought is so ridiculous it's redundant to even |
| investors who wanted to invest in pre ipo deals. For | | | | bring it up but this is something that uninformed |
| a few weeks these guys called with a million | | | | people actually do as part of what they consider 'due |
| questions and demands, most of which were | | | | diligence'. |
| contrary to basic SEC regulations and compliance. I | | | | All you need to do is this: Talk to the senior partner |
| tried to set them straight but they just didn't get it. | | | | at the consulting firm. Establish whether or not they |
| These guys who called themselves consultants really | | | | are full service. Gain an understanding for how long it |
| had no clue as to what they were doing and the | | | | takes them to get you from S1 to trading symbol. If |
| questions they were asking me about my firm in | | | | you want to do some real due diligence, find out |
| order to qualify our firm were completely off base | | | | about their post public investor relations strategy so |
| and were actually laughable. It was irritating at the | | | | your company not only goes public but can stay |
| time, now I just sit back and laugh as I chalk it up as | | | | public and profitable. |
| another lesson learned and another relationship that | | | | Consulting firms who take companies public on the |
| fortunately did not come to fruition. | | | | OTCBB are a small part of the whole but without |
| Here are some realities to consider when talking to a | | | | them, the transaction couldn't happen. They are the |
| consulting firm to take your company public. First, no | | | | 24/7 worker bees doing the impossible for the |
| consulting group acts alone, instead they play | | | | ungrateful....until the symbol is achieved and the stock |
| quarterback or orchestrator to facilitate a smooth, | | | | is trading properly, they you get a pat on the back |
| stress free process. Most consulting firms that take | | | | and, "hey thank you so much for your hard |
| companies public on the OTCBB will have securities | | | | work...what was your name again?" And I always |
| attorneys on staff for the s1 filing, third party SEC | | | | respond, "you can call me whatever you want but on |
| approved auditors for the SEC audit, multiple market | | | | my Share Certificates you can put Princeton |
| makers to choose from for the filing of the 15c211 | | | | Corporate Solutions". |
| and scores of Investor Relations contacts for post | | | | OK, maybe that's a bit of an exaggeration, of course |
| public market creation. | | | | they are going to remember my name but the reality |
| When doing due diligence on an Edgar link for S1's in | | | | is, solid due diligence by a company wanting to go |
| process you'll only see the attorney information and | | | | public starts with a general evaluation of the |
| the auditor. The Consultant has to be content to | | | | consulting firm, some basic technical questions and |
| stand in the background making the entire process | | | | then getting to the root and depth of their contact |
| function and succeed with virtually no public claim or | | | | base to make sure your going public efforts are fast |
| credit. If you're doing due diligence on a consulting | | | | and smooth. |