Brenda Hamilton, a securities & going public lawyer discussed direct public offerings /DPOs, accredited crowdfunding and Form S-1 Registration Statements for small businesses going public.
BOCA RATON, FL, March 23, 2015 /24-7PressRelease/ -- Intuit Inc., a provider of small business software solutions, including QuickBooks, tackles accounting, taxes, budgets and personal finances with TurboTax. Quicken featured an interview with securities attorney Brenda Hamilton.*
Brenda Hamilton practices securities law focusing on direct public offerings /DPOs, initial public offerings /IPOs, accredited crowdfunding, intrastate crowdfunding and going public transactions for small and mid-sized businesses.
The interview's focus included options for small businesses seeking to raise capital. Brenda Hamilton, a securities & going public lawyer, discussed direct public offerings /DPOs, accredited crowdfunding and Form S-1 registration statements for small businesses going public.
Small Business Center: What is the difference between an IPO and a DPO?
Brenda Hamilton, Going Public Attorney: Both an initial public offering /IPO and a direct public offering /DPO involve the sale of a company's securities to investors to raise capital. In an IPO an underwriter sells the securities for the company. In a direct public offering /DPO, the company sells the securities itself. The success of the direct public offering /DPO unlike an initial public offering /IPO depends upon the company's own selling efforts. Many companies conduct unregistered direct public offerings /DPOs using accredited crowdfunding which allows the company to engage in advertising if it verifies the purchasers are accredited investors.
Can any size business conduct a DPO?
Brenda Hamilton, Going Public Attorney: Yes, that's one of the benefits of a direct public offering /DPO.
What other benefits can small-business owners realize from DPOs?
Brenda Hamilton, Going Public Attorney: A DPO allows a company to raise capital at their own pace without the limitations of an initial public offering /IPO imposed by underwriters. Generally, direct public offerings /DPOs are less expensive than initial public offerings /IPOs because there are no underwriter fees. Shares sold in direct public offerings can be covered by a Form S-1 registration statement which provides investors with an exit strategy. Because a DPO can be structured a variety of ways, it provides flexibility and allows companies to ease into SEC and OTC markets reporting.
How should small-business owners decide if a DPO is right for them?
Brenda Hamilton, Going Public Attorney: To raise capital from investors, any company must be prepared to provide transparency.
What advice would you give to small-business owners who are considering a direct public offering /DPO or accredited crowdfunding?
Brenda Hamilton, Going Public Attorney: Small companies and investors are often inexperienced in the financial markets and are easy prey particularly in the OTC Markets. Over the course of my career, I have seen numerous companies and investors devastated by reverse-merger transactions, most of which were recommended by securities lawyers. I would also encourage small-business owners to learn as much as possible about the process before they begin.
* "Understanding DPOs: Should Your Small Business Go Public?", www.Intuit.com, Suzanne Kearns, March 5, 2015, accessed March 16, 2015, http://quickbooks.intuit.com/r/finding-funding/understanding-dpos-should-your-small-business-go-public
For further information, please contact Brenda Hamilton, Securities Attorney at (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com.
Hamilton & Associates Law Group, P.A. is recognized for its experience in securities law and going public transactions including direct public offerings, Form S-1 Registration Statements, SEC disclosures on Form 10-K, Form 10 Registration Statements, internal and corporate investigations involving microcap stocks and white collar crime. With over 15 years of experience it has represented more than 300 market participants in securities matters and going public transactions. The firm was founded by Brenda Hamilton, a securities lawyer.
For further information about this securities press release, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com.
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