Companies needing capital or wanting to sell the business have waited for the financial markets to respond. We believe that conditions are now favorable to affect a major shift in how transactions of these kind are funded. Companies are becoming more realistic regarding business valuation, and investors are seeking better returns, but with liquidity. To meet these needs, a shift is occurring to a more viable alternative, the Direct Public Offering (DPO) for registered and unregistered self-issuers.
DPOUSA is a Web-based direct-to-market financial platform providing its clients and client companies 24/7/365 access to a database of accredited investors and financial institutions. Built around state-of-the-art technology and security protocols, DPOUSA gives issuer and investor alike the confidence to use DPOUSA as a conduit for successful transactions. The DPOUSA difference is the merging of modern technology with human interaction. Here are some key points to consider:
Our research has demonstrated that the cost can be justified in current economic times, and that technology allows for the bypassing of the conventional underwriting process, opting instead for the DPO process.
Market opportunities today are quite robust and represent thousands of potential transactions that could benefit from the DPO process. Private Equity Groups (PEGs) have an inventory in excess of 6,500 potential transactions, a level much higher than the peak that occurred 2006. Many of these, however, are ‘underwater’, meaning that the PEGs paid more than they can get for them in the current market. In addition to these, the aging baby boomers represent a significant group of transactions that also need an exit or transition process.
The process of conventional underwriting as implemented by the Broker-Dealer (BD) community according to FINRA regulations has not generally been able to accommodate SME-sized transactions due to compliance and fee expenses. Moreover, only the largest of transactions attract the conventional investment bankers and broker-dealers for the IPO process.
The limiting issues facing the SME community are arcane rules, lack of broker-dealer access, compliance obstructionism, investor confidence and excessive legal and accounting fees. Many SMEs can qualify for an IPO, but lack the confidence that they can succeed, driven by these factors, holds them back.