Monday, April 1, 2013

And Then Some Publishing Seeks IPO

And Then Some Publishing LLC (ATSP) is seeking capital that is needed to grow our private company; thus we are seeking an IPO (Initial Public Offering) as a way for growing our company.

We understand that IPOs are one of the hottest topics in financial management, but behind all the glamour and the glitz of IPOs, there is a great deal of hard work and personal sacrifice that will be accomplished by the large staff of ATSP.

Our core group of highly skilled professionals have worked around-the-clock for one year, realizing that our first step in acquiring a successful IPO is the formation of a seasoned, experienced team of professionals who are determined to make the IPO happen. We are looking forward to a payoff for all our hard work.

ATSP has recruited the best possible people we can find knowing, in advance, that we do not have the time to supervise inexperienced MBAs fresh out of school.

Our team of highly seasoned professionals include an investment banker, legal council, and SEC expert, and an outside auditor. After a large number of profitable and successful meetings over the course of a year, in addition to a large number of additional conference calls, we have established a plan for the IPO process, which is a basic timeline that has been agreed upon and will be followed religiously.

The first thing we will do—and the process has already been initiated at the highest levels of the company—is to recruit a new management team to run the public company. We have hired a new CEO, Ms. Margaret McConnell, and CFO (Chief Financial Officer) who have already dug in their heels and begun their work. Their first job has been to start compiling the financial information necessary to move the process forward. This is close to being accomplished, and all current signs are positive.

Ms. McConnell has begun her due diligence work. She has written off worthless assets, and all inconsistencies with GAAP (Generally Accepted Accounting Principles) are in the process of being resolved. For example, she has compiled all information useful to present to potential investors and creditors and other users in making rational investment, credit, and other financial decisions.

That information is now available and being constantly updated at the website; however, it is being formalized in a complete prospectus that will coordinate and collect all the data and, thus, minimize duplicative efforts. A draft prospectus will be created and circulated for comments and once corrected, adjusted, and finalized by all concerned, and as a final step in the process of launching an IPO, it will be filed with the SEC (Securities Exchange Commission). At that point, and, too, as a final step, ATSP will issue a press release and sell the company to investors.

In addition, potential investors and creditors and other users will be kept abreast of cash receipts of the company, economic resources, all the claims to those resources, and the changes that have occurred in them. Our new CFO will be providing potential investors, creditors, and other users all the information necessary for making financial decisions, for making long-term decisions, and for improving the performance of the business,. In addition, this information will be useful for maintaining the records of the company.

A three-year historical financial has been drafted, transition contracts for services and products that will now be provided to the newly formed public company have been created, and ATSP has made room for new contracts for independent audits of financial statements.

In addition, pro forma and interim financial statements have been finalized, interim (stub) financial statements for the current period have been produced. From all reports, the financial concerns of the company—past, present, and future—have been assessed and are in the process of being finalized.

A Board of Directors has been formed, and it will govern the organization by establishing broad policies and objectives. It will select, appoint, support, and review the performance of the CEO. It will ensure the availability of adequate financial resources, approve annual budgets, account to the stakeholders for the organization’s performance, and set its own salaries and compensation.

The Board of Directors will be composed of a director (any member of the board), an inside director (a director who, in addition to serving on the board, has a meaningful connection to the organization), an outside director (a director who, other than serving on the board, has no meaningful connections to the organization), an executive director (an inside director who is also an executive with the organization), and a non-executive director (a director who is not an executive with the organization).

The new Board of Directors has been convened.

All of the necessary controls, procedures, and systems that will be required within "public life" have been implemented. Staff changes within the company have been made, new financial systems have been tested, and functions like human resources have been managed.

ATSP is fully aware that once we are a public company, we will be operating in a fish tank—much more visible to outsiders. We realize, too, that this will require servicing our investors, the SEC, and other interested parties. Also, we know that we will have to pay at least $500,000 per year in accounting and director liability insurance fees.

Going public fits perfectly with our strategic long-range plans for growth, and we expect the benefits to outweigh the costs.

We have our eyes on the single biggest source of money, investments made by other companies in emerging, high-growth companies. We realize that for many companies, the IPO process is a grueling and wrenching process that fails to meet expectations; however, for ATSP we have planned for it well in advance (well over the previous year), explored all the various possibilities and problems, laid the proper foundation and support structures, and look forward to a successful IPO.

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At eHow: Money , "IPO Advantages," it says, "While initial public offerings are usually managed so that they increase in value upon going public, this doesn't always happen. Especially when an initial public offering is sold on a "best efforts" basis, the IPO may not be fully subscribed prior to trading and may actually drop in value. While the potential is there for initial public offerings to trade at a profit, investors need to realize that there is still risk involved and that they may lose money, even on an IPO."

At INESTORGUIDE.COM , the opening paragraph of the essay, "Initial Public Offerings," reads: "Initial Public Offerings (IPOs) are the first time a company sells its stock to the public. Sometimes IPOs are associated with huge first-day gains; other times, when the market is cold, they flop. It's often difficult for an individual investor to realize the huge gains, since in most cases only institutional investors have access to the stock at the offering price. By the time the general public can trade the stock, most of its first-day gains have already been made. However, a savvy and informed investor should still watch the IPO market, because this is the first opportunity to buy these stocks."

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Copyright April, 2013, by And Then Some Publishing LLC

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