Microcap Advisor Case Studies

Microcap Advisors case studies present an accurate account of business situations or problems we have dealt with over the past 10 years. In each instance there are common threads that require a clearly defined protocol of establishing the problems and their solutions. Every business is unique in its industry. Every company is a unique entity comprising of the individuals and groups from founders, management, shareholders, investors and stakeholders. To get a complete view of the company all these factors need to be taken into consideration. Every solution is unique in that it requires multiple approaches with the final solution a starting point from which the company moves forward.

Two individuals developed a concept for an internet business for secure online file and document delivery. They self funded the initial programming, design, and functionality of the technology. To take the next step they required capital and expertise in business development.

Problem:

The Company needed a clearly defined business model, business plan, and corporate structure to attract management and investors while moving into operations as soon as possible

Microcap Advisors Involvement:

Microcap Advisors did an initial assessment of the technology, strengths and weaknesses of the founders, business model, and industry. The Founders expanded Microcap Advisors’s participation after the assessment.

Microcap Advisors Solution

After assessment and overview it was determined that Microcap Advisors prepare a business plan, put in place a new corporate structure, began an operational plan that maximized the founders limited capital and budget. The Company was then operational and able to attract several investors to get the Company ready for the next step of development; creating a public company.

Results

The Company was able to easily transition into a small public company using Microcap Advisors to do all the filings, create an initial private placement, and move into full operations. The Company was able to attract several key management including sales, operations and administration. Microcap Advisors continued in the strategic management of the Company and currently acts as an advisor to the Board of Directors

Two individuals developed a concept for an internet business for secure online file and document delivery. They self funded the initial programming, design, and functionality of the technology. To take the next step they required capital and expertise in business development.

Problem:

The Company needed a clearly defined business model, business plan, and corporate structure to attract management and investors while moving into operations as soon as possible

Microcap Advisors Involvement:

Microcap Advisors did an initial assessment of the technology, strengths and weaknesses of the founders, business model, and industry. The Founders expanded Microcap Advisors’s participation after the assessment.

Microcap Advisors Solution

After assessment and overview it was determined that Microcap Advisors prepare a business plan, put in place a new corporate structure, began an operational plan that maximized the founders limited capital and budget. The Company was then operational and able to attract several investors to get the Company ready for the next step of development; creating a public company.

Results

The Company was able to easily transition into a small public company using Microcap Advisors to do all the filings, create an initial private placement, and move into full operations. The Company was able to attract several key management including sales, operations and administration. Microcap Advisors continued in the strategic management of the Company and currently acts as an advisor to the Board of Directors

A small public company had become stagnate and was faced with losing its public listing.

Problem:

The Founder and CEO of the Company had made bad decisions in the course of two years of operations due to his inexperience in the public market. Share price was down to pennies and financing of the Company was impossible due to the corporate structure. Management, shareholders, and stakeholders were at odds to a solution to turn the Company around. Microcap Advisors was contacted by the CEO and a major stakeholder to review the situation and offer recommendations.

Microcap Advisors Involvement:

Microcap Advisors did an initial assessment after reviewing the public filings, current shareholder list, and corporate structure including; articles of incorporation, bylaws and resolutions passed by the Board of Directors. Microcap also reviewed the financials of the Company, including all major contracts, liabilities, and debt. The business was solid and on the verge of generating revenue but needed financing to continue operations past the short term.

Microcap Advisors Solution

After an analysis, assessment and review of the Company by Microcap Advisors, resulting in a corporate restructuring plan, the Board of Directors agreed to put it in place. In order to accomplish the restructuring Microcap Advisors was designated the lead and prepared all documents, resolutions and oversaw all filings while working with the Company’s SEC attorney. Microcap Advisors became the liaison between management, major shareholders, and stakeholders.

Results

The Company was able to transition into the restructuring recommended by Microcap Advisors. As a result the Company rolled back its share structure, brought in new management, and clearly addressed the financial issues of the Company. Financing was achieved through new investors by a private placement. Microcap Advisors continued as an advisor to the Board of Directors.

The owners of a small consumer electronics manufacturing company were interested in taking their company public.

The three owners had developed their company with financings from friends, family and several angel investors over the course of three years. They had discussed the possibility amongst themselves but needed a clear assessment on what options they had and would satisfy investors in the company and give them a substantial return on their investment while being fair to all parties involved.

Problem:

The owners had received conflicting information and advice from a number of sources. They understood that a publically traded company would give their investors and stakeholders an viable exit strategy and allow the Company to be financed for the next stage of their development. There were several significant issues between the owners on the value, business development, and ownership percentage.

Microcap Advisors Involvement:

Two of the owners contacted Microcap Advisors and after a brief discussion it was agreed that an Assessment and Advisory Report would be in order. Microcap Advisors’s report was used by the owners to formalize their decision to become a public company and they hired Microcap Advisors to take them through the process.

Microcap Advisors Solution:

The owners were presented with a detailed plan for the steps necessary in the process. Microcap Advisors was also was involved in the negotiations with owners, investors and stakeholders so that the process would go smoothly. An SEC attorney was hired, an opening audit of the financials was begun, and a complete corporate audit was done by Microcap Advisors. Microcap Advisors oversaw the complete process of documents, corporate records, and filings, while continuously working with the owners and keeping them informed of the progress.

Results:

Over the process of a year the Company was able to file for a listing on a public exchange with the full knowledge and support of the owners. Upon approval of their listing as a public company the company began the next stage of their growth. Microcap Advisors’s involvement allowed the owners to focus on their business and gain a better understanding of their responsibility of being corporate officers. Microcap Advisors continued to remain involved in an advisory capacity and help them achieve several significant financings over the years.

A regional construction subcontractor involved in underground utility location wanted to expand their business to a national market.

Problem:

The Owners were focused on the day to day field operations and had no experience how to operate on a national level. The Owners had different views on how this should be done and asked Microcap Advisors to do a general analysis and report.

Microcap Advisors Involvement:

Upon completion of the general analysis and report, the Owners asked that Microcap Advisors become directly involved with transforming their company as recommended. A business, strategic, and operational plans were created and approved.

Microcap Advisors Solution:

The Owner’s were given detailed plans and Microcap Advisors moved into the operational side of transforming the business. Two divisions were set up and management was reorganized for cost effectiveness and efficiency.

Sales and Marketing materials were created and distributed. The web site was redesigned and updated. Microcap Advisors also recommended several new (non-construction) applications for their technologies and promotional materials were created for specific industries and potential clients.

Results:

The Company was able to bring in several large contracts outside their region in short order. Microcap Advisors was also able to set up several national contracts with large organizations for the Company. A streamlined sales and marketing process was created for quick response as well as new procedures put in place for allocation of resources. Over the course of a year, sales of over $3 million dollars were attributed to the Microcap Advisors effort and a national identity was established for the Company.

The new CEO of a small public company needed an effective marketing and awareness program for his Company.

Problem:

Investor Relations had been problematic and mismanaged. The Company’s reputation had suffered and the new management knew that its identity as a publicly traded Company was important to its emergence as a viable entity. The Company had a limited budget and resources.

Microcap Advisors Involvement:

The CEO interviewed Microcap Advisors and asked for a strategic plan on marketing and awareness for the Company, including revitalizing its Investor Relations program. Microcap Advisors provided a plan after reviewing the Company, its corporate structure, and overall business. The CEO along with the Board of Directors reviewed the plan and approved it.

Microcap Advisors Solution:

Microcap Advisors became the lead firm implementing its strategic plan for the marketing and awareness of the Company. This included a media strategy, financial writings, press releases, new corporate web site design, and a new proactive investor relations program. Shareholders were contacted and apprised of the Company’s new management and their commitment to increasing the value of the stock through development of the business.

Results:

The Company was able to see a direct response to its new direction and the restoration of its reputation in the business community as well as in the public market. Microcap Advisors managed this program for a year before bringing in a qualified manager to handle this operation for the Company. Microcap Advisors continues to be an Advisor to the CEO and the Board of Directors.

A small niche software company needed to expand and revitalize its business.

Problem:

The CEO and Board of Directors believed that expansion could be better accomplished through acquiring a company rather than using its limited cash to expand its operations. The corporate structure of this small public company was problematic and suitable acquisition candidates were hard to locate.

Microcap Advisors Involvement:

Microcap Advisors was referred by one of the Board of Directors. The Company was analyzed, reviewed, and a plan was presented to the CEO and the Board of Directors. The strategy was conditionally approved by the Board of Directors based on negotiations with several major shareholders, stakeholders and investors.

Microcap Advisors Solution:

The strategic plan was in three stages; corporate restructuring to allow acquisition through stock, research into finding the right acquisition company, negotiation, and structure of the acquisition. Microcap Advisors handled all three processes, including due diligence, while reporting directly to the Board of Directors. With defined milestones and objectives, Microcap Advisors organized the players including attorneys, auditors, and the Company’s CEO and CFO to meet the Company’s goals.

Results:

In the course of six months the Company completed its corporate restructuring, reviewed six acquisition candidates and finally selecting one, Microcap Advisors negotiated favorable terms (all based on a stock swap), and helped smoothly integrate the acquisition. A new revenue stream and an expanded technology base increased the awareness and reputation of the Company in the public market.

About Microcap Advisors

Founded in 2013, Microcap Advisors has long been recognized for advising small companies in multiple industries to achieve success and growth. We specialize in strategic corporate development, financial analysis, and in-depth reporting of the processes that drive a business and allow our clients to make better, more informed strategic decisions in the areas important to them.

Contact Us in Confidence and Confidentiality

There’s no such thing as a generic industry solution from Microcap Advisors. Our services are designed for executive management, inventors, entrepreneurs and business owners. As advisors, we research, plan, organize and deliver an executable solution as part of our clients’ teams. Our communications are timely, straightforward and on-point.

Whether your company is a startup, a small public company, a private company looking to go public, or a completely new venture, our services can help.

Our Commitment

Microcap Advisors’s mission is to provide the highest quality service to its clients.

Business opportunities grow in size and complexity; advisory relationships are more important than ever and need to be based on trust and respect. We pride ourselves on our work ethic, ability to deliver, and our track record of success.

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CONTACT MCA

Address:
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Suite 320
Los Angeles, CA 90071