Internet Securities® helps existing shareholders of well capitalized privately – held companies to sell their equity shares to qualified institutional investors. This provides an alternative method for existing shareholders to “monetize” their shares and convert their equity into cash without having to wait for an IPO or M&A event.
Securities professionals at Internet Securities work closely with select pre-IPO companies and their founders, board members, senior executives, employees, and other shareholders to sell their shares to institutional investors in a discreet and timely manner.
Internet Securities® structures these secondary transactions (also called non-issuer transactions) between the seller and buyer in an orderly fashion and at a market driven price which reflects equilibrium conditions between supply and demand.
Internet Securities® often develops institutional quality equity research reports for these select pre-IPO companies to help ensure market transparency, provide company insight, and define a fair market valuation range.
- Prepare an agent agreement to allow Internet Securities® to represent the shareholder;
- Obtain buyer interest from Internet Securities’ network of institutional investors;
- Obtain executed NDA/Non-circumvent agreements from both seller and buyer;
- Agree on price between seller and buyer;
- Act as a liaison to pre-IPO company, if necessary;
- Establish stock purchase and share transfer agreements between seller and buyer;
- Establish escrow account;
- Coordinate with buyer the transfer of funds to escrow account;
- Coordinate share transfer between seller and buyer;
- Seller receives cash in exchange for the shares he or she tendered.