Increase Your Market Value with ISM

Billionaires like Warren Buffet often buy private companies. One reason they do this is that they know two things about private business that most private business owners themselves do not know:

 

1. The Lack of Marketability Discount

There is an IRS approved discount that business valuators must use when valuating a private business. This is called “The Lack of Marketability Discount." It is imposed because there is no public market where private shares can be bought or sold.  This discount percentage is set by the valuator and has averaged over 30% over the last 40 years.

Billionaires who purchase private companies know that they can remove this discount by taking these companies public after purchasing them. A publically traded company which was valuated at $10 million would be discounted to an average of $7 million if it were privately held. The purchaser would take that company public through an IPO or merger thereby removing the discount and increasing the value to about $10 million, which is over 42% increase. 

2.  Buying Private Companies with Public Company Stock

Billionaires also know that they can use their publicly traded stock to purchase private companies at a discount. The purchased companies stock then becomes publicly traded and the valuation of the new company increases due to removal of the Lack of Marketability Discount. The value of the public company will also increase because of the acquisition, which will benefit both the buyer and the seller.

Private companies posting on ISM become publicly traded companies and can purchase other private competitive or complementary companies with their liquid stock. They would then enjoy the same advantages as the billionaires.

Advantages of Posting with ISM:

Most private business owners choose to take the discount rather than going public due to the expense, time, effort and loss of privacy required. The Independent Stock Market eliminates or decreases these problems while allowing the company to enjoy all of the benefits of being public. These are some of the advantages offered:

·        Increase the value of you business by an average of over 42% by making it marketable.

·        Provide a means for owners to take out some of their sweat equity

·        Provide liquidity to pay off initial investors

·        Provide capital needed to grow your business

·        Provide liquid stock to purchase competitors

·        Increase your brand name through online marketing and advertising 

To find out more about how the Independent Stock Market can help you, contact us at support@independentstocks.com.

 

 


Selling your business without utilizing the services of the
Independent Stock Market
could cost you hundreds of thousands - even millions of dollars! ISM can increase the value of your business by making it marketable to friends, family, employees, customers, and online investors.


 

Contact ISM Today!

801-951-0420

For business owners who would still rather sell their businesses, we have great news!

If your business is valued at more than $5 Million and you would accept 20% down and the rest in incremental payments over the next ten years, ISM Acquisition Company is interested in talking with you about buying your business.

ISM Acquisition Company commits to add an additional 10% in value to the company to help it continue to grow. 


Contact the ISM
Acquisition Company today!