Advantages for Companies

More entrepreneurs and small-sized companies are choosing to execute direct offerings to save money, time and increase loyalty among affinity groups and customers.

Consider this - DPOs have been shown to reduce the underwriting costs and related fees of a traditional Initial Public Offering (IPO) by around 80%. 

Advantages of a Company conducting a DPO may also include:

• By offerings shares in your Company to employees, suppliers, distributors and customers, you provide an added incentive for others to contribute to your profit potential and loyalty in your company and brands can be strengthened.

• DPOs can grease the wheels of other financing options for many years to come. Bank loans, government grants and loans, bond offerings, and even venture capital can be more attainable once the risk of investing has been spread over a diversified shareholder base.

• DPOs are easier and quicker to close than IPOs. Although the money raised is typically less than an IPO - a DPO using the iValueRich.com platform typically can raise between $250,000 and $2 Million - the long term benefits as well as the immediate financial rewards to your company and shareholders are tremendous.Google (Nasdaq: GOOG); Costco Wholesale Corp. (COST); and NACTEL Energy (OTCBB: NCEL) are among the many companies small and large who have turned to DPOs to achieve their financing goals.

• With the added experience of taking your company public, many entrepreneurs find it easier to bring other companies public.

• By issuing stock, you have capital that you never have to pay back. Other financial instruments, like a loan, require interest and recurring payments. Plus, you won't have to worry when a loan may be called back.

• You'll know just what your company is worth, and can avoid much of the guesswork that goes into marketing a security.