Why Your Company May Need to be Public?
Client Services

One of main strategies to increase the value of your company is to increase your earnings through current and future management activities especially in terms of special events or accomplishments. It is important to note that not only does the actual positive event add to the profit and therefore value of the company, but the recognition or news about new profitable company activities by the investment community can in itself increase the price/earnings ratio (“PE”) and therefore the value of the company and its shares.

Some of the more recognized events that can increase earnings and excitement about your company are merger and acquisition to gain the income of another company and/or the acquisition of other valuable resource by your firm. Next is the addition of new and/or management and Board of Directors members that will guide and bring new relationships revenues and profits to the firm. And, finally the acquisition of new technology for the company can provide new products and services or a whole new direction for the company.

While this three point list represents major events for value, there are many other events unique to a particular company and its situation. Following is more thought on the three main areas.

Acquisitions of Income and Resources

Increasing the value of your company through mergers and acquisitions is extremely potent as a driver to success. Although not without some challenges of corporate cultures and management integration when the operations of one company are merged with another, if the searching, negotiating and planning for the combination is done properly, then any challenges are justified and can be handled for the large gain that is possible.

The area of merger and acquisition should have the best advisors and plan for a smooth transition to successfully increase maximum revenue, profit and company value. Again, the typical positive results are so significant that investing in the “right” mergers and acquisition team is economically justified for your company. One of the Morris BDC main interests as investors and mentors to your company is on-going acquisitions by you of other companies and their profits.

As a public company you have the advantage of using stock as part of the acquisition consideration to acquire other companies and their profits. Some in the investment business say: “becoming a public stock company gives you a printing press to print money for acquisitions by using your stock.”

Although mergers and acquisitions are not easy or simple, this growth strategy is very common and has an established track record. The practice some times referred to as “buying earnings” is very sound especially when you as a public company with a higher price earnings multiple buy private companies and/ their earning at a lower price earnings multiple simply because the target company is private.

However, the biggest challenge for most acquiring companies is for management to find the time for creative merger and acquisition out of a busy time schedule for running their operations. Of course, that’s where Morris MBDE can help to manage a team of professionals paid only on a performance basis to research and find opportunities. We know the specialists that can get the acquisitions job done for you under our guidance,

Grow Your Company with Additional Management and Board Additions

A second major opportunity area for growth in revenue and earnings is in the management and Board of Directors of the company itself. Even if your company has some the “best” persons in this area currently, you may be severely limiting your company’s possibilities, revenues and profits.

Each manager and each board member is a unique individual with experiences, business contacts and beliefs. The point of “thinking out of the box” and new management techniques for the company along with new business relationships can greatly expand the possibilities of a company.

At MorrisBDC-MBDE we want to share the growth goals of the current management and directors but MBDE will also have a new perspective, new ideas and new people to suggest. However, MBDE does not wish to operate your company since that is your responsibility.

MBDE probably has an entirely different set of personal relationships than you. However, we share a common goal with you of increasing the value of your company. It is worth noting, that stock or performance related options in a public company can greatly expand your company’s ability to recruit the best people to your company.

Grow Your Company with New Technology

New technology development is a risky and expensive activity for a company especially if you internally manage and pay for it. That is why we prefer utilizing technology transfers and acquisitions from outside organizations that are paid on a performance and/or profit sharing basis by your company. MBDE has personal contacts with some of the leading technology transfer organizations in the world.

A new proven technology for your company can literally create a new major direction or opportunity for your company. Again, the use of stock by your public company should increase your ability to attract new investment capital and new technology licensing opportunities. Or you can provide the incentive to new technology holders to joint venture with or license your company for the exploitation of new technology.
The commons threads that run though these events are having a team like MBDE- MorrisBDC that can help create these events and also help you become a pubic company to gain the ability and resources to seize these opportunities

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