• HOME • Background • Services • D & O Advisory • Articles • Links Contact Us     Our other site: Regal Seminars		SERVICES "We believe very strongly that great things can happen when people put their egos aside and their heads together." Description of Services • Investing in Private Companies • Corporate Finance • Business Advice • Purchase or Sale of a Business • Transferring or Exiting a Business Investing in Private Companies History has shown that outstanding rates of return can be realized by investing in private companies. Investors in private companies sometimes have more control or input into the company's management and direction. One way private company owners can become wealthy is by either selling their company or “going public.” However, investments in private companies also involve substantial risk. Investing in a private company is similar to investing in publicly traded securities, but there are several significant differences. First, there is usually little or no liquidity with securities issued by a private company. When an investor purchases publicly traded securities and realizes a mistake was made, or that they need to sell, they can easily do so. In contrast, however, the investor in the private company often cannot sell their investment. This fact means that investors should be much more cautious before investing in a private company. They can reduce the level of their risk by having the appropriate legal documents and contracts signed. Second, the lack of liquidity also decreases the value of a private company's securities; investors will pay more up front to get liquidity. Third, the lack of liquidity forces investors to be more “long-term” investors, and focus on the company's operations. To make money, investors must sell their investment. An “exit strategy” is important. We act as an advisor for both the experienced and the novice investor. We help our clients consider issues and factors that they would not have considered on their own. GBIC is unique in that we are able to consider the tax, legal, financial, business, and practical implications. It is rare that a consultant has the experience and background to consider all of these areas at once. In every case, GBIC will provide guidance, and discuss options that are available. In short, we help our clients reduce the risk of losing their investment, and increase the odds of making money. We advise our clients as to:  A potential investment in a specific company Our investigation of the private company under consideration, and its key personnel Whether our client should add to, or dispose of their investment The negotiation, structure, and documentation of an investment The investor's exit strategy Corporate Finance To grow a company, capital is often needed. We advise companies that need capital and investors who provide such capital. We advise our clients as to: How much capital to raise Potential sources of capital for the company How to present the company to investors How to negotiate, structure, and document the capital infusion The value investors can add, in addition to capital Business Advice Many business owners and executives are very knowledgeable about their industry, products, and services. However, they often need help in resolving a variety of operational, organizational, marketing, financial, accounting, and tax issues. Clients include individuals, start-ups, early-stage and more established companies, as well as troubled businesses. We identify and improve many areas within their company that may be of concern, so that their company can increase in value. GBIC assists Attorneys, CPAs, financial advisors, insurance agents, and other professional advisors to more effectively represent their clients. We can simply advise the professional as to specific issues, give a second opinion for a large or complex matter, or if desired, assume a larger role. The possibility of key points being overlooked is drastically reduced. We advise our clients as to: How a company's operations should be structured How to turn around a troubled business A specific transaction or contract under consideration A company's business strategy How to improve business operations Ways to increase a company's cash flow, revenue, and profitability How to more effectively market a product or service Ways to motivate and compensate employees Criteria for hiring and firing employees Purchase or Sale of a Business The purchase or sale of a business is often a major transaction for the parties involved. We help our clients avoid the numerous pitfalls that could otherwise cause problems or obstacles. We advise our clients as to:  How to position a company for sale The proposed price, terms, and deal structure Alternatives to a purchase or sale Potential buyers or target companies The results of our investigation of either the seller or the buyer Negotiations of the transaction Critical issues, and creative ways to resolve them Transferring or Exiting a Business Many business owners want to transfer their business to either family members, one or more key employees, to an employee stock ownership plan (ESOP), or to a charity. We advise our clients as to: Options available to the business owner The advantages and disadvantages of each option The potential tax implications Gerschick Business & Investment Counsel, LLC Dennis J. Gerschick 2691 Blairsden Place Kennesaw, GA 30144 770-792-7444 Email Us
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