123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Free Up Capital Using The Independant Stock Market For Secondary Market Investment

Profile Picture
By Author: Gwendolyn Evans
Total Articles: 3
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

You have built up your company over the years as a private enterprise. It has a solid bank balance and a reliable profit margin that has enabled you to get to a stage where you wish to retire. Now you are looking for a buyer.

Well you know that pre tax profit over the last five years has amounted to $20mil, the assets in the factory in terms of machinery and instrument cost you $50 mil over the years, some is a bit antiquated but it all works, the you have other assets worth another $500,000 (Desks, computers, cars and the like)

You have a debtor's book of $3 million being mostly less than 90 days. A bank balance of $220,000. Staff who are hard working and honest. What is your business worth.

If you were to set it up today with new equipment it would require $60 mill, Ok depreciate the equipment and cars...so maybe $45 million, Profit say half of the 20mil. The Bank Balance is yours so that doesn't count, the debtor's book you could sell for its face value or maybe discount it slightly for the trouble of collection.

You would therefore expect to sell it for $45mill plus $10 mill plus $2.7mill = $57.7 ...
... mill. Sadly this is unlikely. Professional buyers of businesses won't buy at that rate. They will discount it even further than you think and will probably start at $35 mill and may top out around $40 mill. This is because you are kind of trapped unable to sell your stock easily. When you do sell you will probably have to bite that loss as well as pay a business broker a commission.

An Alternative is to sell it on the New York Stock Market. As you well know that is a very different ball game requiring no end of reports and filings and meetings. By the time you are listed you will have used up a million dollars in fees and costs and spent six months at least in interminable and boring and repetitive meetings.

But there is now an alternative in Secondary Market Investment via the Independent Stock Market. It puts you, the seller in contact with genuine investors who will enable them to realize a market value for the company that is actually approaching the market value. This may be done by a public company actually purchasing your company with shares in its own....(it issues more shares to cover the cost of the purchase) and this allows purchased company to become a stock traded on the NYSE.

Choosing this option will enable you to achieve a truer value for your company without having to sell off at a discount.

If you wish to realize some of the equity you have put in over the years the ISM may be the way to go. They have genuine investors looking for a safe reliable home for their cash and are quite willing to give you the assistance you need to get yourself a realistic value for your business.


Obtaining a true market value for your company is made possoble using the Secondary Market Investment.

Total Views: 199Word Count: 517See All articles From Author

Add Comment

Investing / Finance Articles

1. Top Credit Card Processors In Europe (2026): A Complete Guide To Credit Card Processing
Author: ayush

2. What Are Bridging Loans And How Do They Work?
Author: Financeadvisors

3. The Ultimate Guide To Choosing Your First Crypto Mining Rig
Author: clark

4. Iptv Payment Gateway & Iptv Payment Solutions: How Webpays Powers Secure Streaming Payments In 2026
Author: ayush

5. Forex Merchant Account & Forex Payment Processing: How Webpays Powers Secure Trading Payments In 2026
Author: ayush

6. Low Interest Personal Loans In Hyderabad For Flexible Everyday Needs
Author: anilsinhaanni

7. Dhan Kuber
Author: DHANKUBER

8. Casino Merchant Account, Adult Merchant Account & Gaming Merchant Account: How Inquid Helps High-risk Businesses Scale Securely In 2026
Author: ayush

9. Global Payment Processing: How Companies Can Accept Payments Anywhere In The World Without Challenges
Author: ayush

10. What Are The Benefits That A House Renovation Loan Could Bring You?
Author: Helen Johns

11. How To Choose The Best Payment Processing Companies And Find The Best Payment Processor For Your Business
Author: ayush

12. The Invisible Engine: How Call Centers Power Progress In Emerging Markets
Author: Shan Tait

13. Small Business Loans Uk: 5 Things You Need To Know
Author: Financeadvisors

14. How To Choose The Right Equity Release Provider In Uk For You
Author: Financeadvisors

15. Credit Card Payments In 2026: Why Companies Must Have A Cutting-edge Credit Card Payment System To Remain Competitive
Author: ayush

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: