Investor relations ensures that a company’s publicly traded stock is being fairly traded through the dissemination of key information that allows investors to determine whether a company is a good investment for their needs. IR departments are sub-departments of public relations (PR) departments and work to communicate with investors, shareholders, government organizations, and the overall financial community.
In conjunction with client, identify specific parameters of target companies.
Commence search of target companies that are not on the market nor are represented.
Discuss results of target company search with client.
If necessary, conduct revised search(es) for client.
If necessary, review revised search(es) with client.
This is a very sophisticated approach which typically yields multiple equity offers to be valued not only in terms of the equity for cash ratio, but also for the intangible contributions made by the equity partner (investment group or strategic partner/synergistic company). These intangible contributions can far outweigh the capital contribution, and can include; management expertise, relationships, distribution channels, reduced overhead, intellectual property, transfer of knowledge, additional sources of capital at a lower cost, etc.
A reverse takeover (RTO) is a type of merger that private companies engage in to become publicly traded without resorting to an initial public offering (IPO). Initially, the private company buys enough shares to control a publicly traded company. The private company’s shareholder then exchanges its shares in the private company for shares in the public company. At this point, the private company has effectively become a publicly traded company. An RTO is also known as a reverse merger or a reverse IPO.
Now it is possible to obtain liquidity from these assets using stock loan programs without losing potential profit from appreciation of your portfolio should the stock price rise in value as the loan mature.