The Hottest Investment Game in Town
The buzz words today are “private investing in business offerings”. Since the majority of private investors still lack confidence in the stock and housing markets they are researching and turning to investment opportunities in business projects, start ups, various business concepts, existing businesses and most of all franchisor companies.
For decades entrepreneurs have successfully used private placement offerings to fund their businesses with capital and for years, accredited private investors have experienced the benefits of these offerings whereby the company offers a minority equity position through the sale of stocks or membership units. Private placement offerings are risky but when an investment becomes a “home run”, the rewards are tremendous with returns sometimes hundreds of times the initial investment. Some investors seek out companies that intend to be acquired or will consider an IPO within a short period of time. The company uses the private placement offering for seed capital while others are for business expansion.
Predictions for 2010 are that over $1 trillion dollars will be raised through private placement offerings. In 2007, $600 billion was achieved therefore you can see the growth of these types of offerings.
All private placement offerings are regulated by the Security & Exchange Commission and require the company making the offering to have the proper exemption in the form of a Reg D memorandum. Depending on the amount being raised will determine the Reg D exemption. For a company raising less than $1 million, a Reg D 504 most likely will be used. For those companies seeking more than $1 million, a Reg D 506 would most likely be used. In addition to the federal SEC guidelines and regulations nearly every State has laws to protect the investor. This is why many private investors like investing. There are penalties, fines and even criminal prosecution for individuals who misrepresent and/or commit fraud in the offering.
Profran Consultants, Inc. works with approximately one hundred individuals each year who offers private placement offerings to investors. Since 1982, Ken Hollowell, CEO/President of Profran Consultants has experiences in this arena. Mr. Hollowell guides his clients through the regulations, guidelines and requirements preparing the proper memorandum to be offered along with preparation of the promotional and marketing materials. In addition, Mr. Hollowell coaches and teaches the client in ways to find and approach private investors. His client’s success rates are among the highest in the industry. The range of industries are from retail, manufacturing, technology, environment friendly, real estate, mortgage, automotive, health care, entertainment, and franchise companies to name a view.
For more information on existing investment opportunities or funding your company, e-mail info@regdconsultant.com or call Mr. Hollowell at (407) 363-3545.