Private Placements

A private placement is a funding round of securities which are sold without an initial public offering, usually to a small number of chosen private investors. These private investors can include large institutional investors, such as banks, insurance companies, or pension funds.  Private placement is the opposite of a public issue, in which securities are made available for sale on the open market.  The following are some of the benefits of a private placement:

• High degree of flexibility in amount of financing;
• Investors are more patient than venture capitalists;
• Much lower costs than approaching venture capitalists or selling the stock to the public as an IPO;
• Quicker form of raising money than usual venture capital markets.

MCM Value Management will work with management to determine if a private placement is the best way to raise capital based on the company’s circumstances.  Once the decision has been made to move forward with a private placement, MCM Value Management will help the company get up-to-date with respect to its accounting and financial reporting requirements.  MCM Value Management will then work with the company to create a sound business plan with financial models and forecasts, a private placement memorandum (PPM) disclosing the full facts of the investment and business, provide the legal work to support the PPM, and most importantly will identify and solicit qualified investors to raise the capital.