|Why Morris Business Development Company (MBDE) is the Best Choice for You?|
from Private Equity Firm Partners
Alternative financial strategies for growth through reverse merger with an existing public company shell or an initial public offering (“IPO”) as discussed above in the sections (Is a Reverse Merger, IPO or BDC Spin-Out the Best Way for You to Raise Capital?” have become more difficult to evaluate due to a lack of underwriter interest and SEC scrutiny for fraud and manipulation.
The Morris Business Development Company (“MBDE”) business model focuses both on your needs and on the investment community needs that will feed your growth in full compliance with SEC requirements.
And, the intrinsic value
of your company is increased by fostering growth in revenue, profits
and dividends. The main services provided to our Portfolio companies
to help you are as follows:
*raise capital for the initial
stages of development as a private or public company
*understand, prepare for and comply with SEC Government accounting and reporting regulations including Sarbanes Oxley rules for reporting public companies.
*spin-off shares of the portfolio company and pursue registration and listing for trading
*raise significant capital as a public company through institutional PIPE funding.
Some of the MorrisBDC portfolio investments will also be supported by our Private Equity Firm partners, Morris Capital Fund I and other independent private funds. Both affiliated and non-affiliated funds may participate in funding the spin-off and mentoring process followed by a larger cash investment round or PIPE financing.
The (“PIPE’) or “Private Investment in Public Equity” by funds is predicated on the portfolio company’s stock being publicly traded. Once questions of due diligence and portfolio company valuation are answered, then significant additional capital should become available to our public portfolio company versus any private stock company. In addition, the value of the public portfolio company should be significantly higher as a public versus private owned company due to the securities higher price earnings (“PE”) multiple generally associated with more liquid investments that can be sold into the public stock market. Further, earlier investments in the portfolio company by private equity fund should help maintain interest by the funds in additional equity investment along with funding other events that increase the value of the portfolio company. (See section on “Increase the Value of Your Company 3 to 5 Times.”
IInvestment of time and resources other than money by Morris Business Development Company in your Company is made to increase the amount and certainty of the return on the MBDE and investor capital invested.
Investors in a portfolio
company including MBDE expect your portfolio company to grow sales and
profits. That growth enables us to spin you out as a successful public
company. Your company shares will be dividend out to our MBDE shareholders
by MBDE. Also, MBDE retains some of your shares to build the value and
expand the capabilities of MBDE to further assist your company and other
portfolio companies. MBDE will retain from 10% to 50% of the shares
it acquired from these companies as part of its stock portfolio.