IPO events have traditionally been reserved for larger companies or unicorns that can afford to pay north of $1M to go through the process. Until now.
Our revolutionary process allows companies generating $500K+ in revenue with no debt to IPO without any costs.
Getting Premium Value from your Company
The sale of small to medium-sized businesses represent 80% of the wealth created in the world. Yet, only 12% of companies sell, on average. This makes it tough on business owners looking for an ideal exit event. Through the sale of numerous businesses over the years, our team grappled for another way to enhance the exit process. This led to the Scaled IPO designed for owners of profitable, debt-free businesses.
Driving Reason for the Scaled IPO
Most business owners we work with have built very successful businesses, but aren't sure of the best way to get value out of the business (other than drawing a paycheck or perks). Eventually, every business owner wants to cash out of the business and retire comfortably, even at a young age. But their options are limited - sell the company or close its doors. Our team was determined to find additional ways to create stellar exit events. This led to global partnerships between companies destined to create something new - the IPO for small to medium-sized businesses that doesn't cost the owner anything.
In essence, we take your company public on the ideal stock exchange. None of the costs to list your company are borne by you or your organization. This allows you to gain access to higher multipliers, as publicly traded companies trade at far higher valuations or PE ratios than private companies. Further, it gives you liquidity for your ownership. You can sell some of your stock to buy a house, boat, etc. or all of it to retire - it's completely your call. And you don't have to source a buyer of the company or accept undesireable terms - just sell your shares on the open market.
How does it work?
To list on a public exchange you need scale and size. So the first order of business is to locate other businesses in similar or adjacent industries that are willing to join forces with your company. These may be companies in the same region or even companies in other countries that offer a unique, strategic fit. Each business owner exchanges shares in their business for stock in a central holding company, based on metrics agreed upon by the parties, and the resulting conglomerate is listed on a public exchange. Each successful business owner is given the freedom to continue to run their business in their own way, helping to ensure that the talent that built the business in the first place continues to build the business in the future. Plus, you benefit not only from the growth of your organization, but also from the growth of others that are part of the new group.
Criteria for a Scaled IPO
Only the strongest businesses are eligible, but those that meet the criteria have access to a life-changing opportunity to take their company public, achieve liquidity on their shares, and maintain control of the company. Here are the high-level metrics to consider:
- US$500K or more in revenue
- No debt
- Healthy margins
- Potential for future growth
- Run by talented leader(s)