March 8, 2010 0

Take A Company Public: Anatomy of an S-1: A Must Read If You’re Going Public

By James Scott in best bicycling

Your company is growing. Now you are ready to start raising serious capital and you here the public fund raising markets. Here are the basics of your S-1 filing. Know the lingo before you hire a consultant. Because companies must adhere strictly to SEC set of laws, initial prospectuses are similar in their organization. Each S-1 generally consists of the following sections:

Front Section — An S-1 contains a small amount of information not available in a brochure. In this first section, you can quickly find the issuing company’s phone number and get a vague sense of the future offering price.

Cover/Inside Cover — The brochure cover outlines the general terms of the offering, including names of the underwriters, number of shares offered, and pricing information. The actual share price is absent from a brochure until the day of the offering.

Brochure Summary — Here you will find a brief synopsis of the company’s business and history, a modest discussion of the change in capitalization to occur as a result of the offering, and a useful summary of financial information covering the last five years, if available. If you are screening prospectuses for investment thoughts, start here.

Risk Factors — After you have read a few prospectuses, you will become familiar with the “usual suspects” in this section, including “Possible Explosive nature of Stock,” “Limited History of operations,” “Dilution,” and “Dependence on Key Personnel.” On the other hand, this section is a valuable read to be sure that you know the challenges facing the company’s management. The discussion of struggle can be sobering, but it can also provide a means to compare the value of the issuer against the financial routine and market valuation of its competitors.

Taking your company public should be an exciting and restorative time. Don’t take excessive risks, hire a consulting firm who can update this process and deliver the results you’ll need for success!

Want S-1 Filing Information? Go Public With Your Company, call Princeton Corporate Solutions at 267-233-0183Take Your Company Public the simple way!

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