Initial Public Offering Services

In preparation for an initial public offering ("IPO"), a company must be certain that it is in compliance with SEC and IRS regulations on options, warrants, and prior stock transactions.

Options and warrants granted within a year of the IPO are treated as outstanding for reporting purposes and the calculation of fully diluted EPS. The issuance of stock or the establishment of an option exercise price for less than fair market value ("cheap stock") is frowned upon by the SEC. If a cheap stock issue is revealed, the company could be required to book a compensation charge. The surprise compensation charge may derail an IPO. Additionally, the IRS will assess employees additional income tax and penalties. Adams Capital can help you avoid placing the company and its employees in the "cheap stock" trap by performing the valuations necessary to satisfy the SEC and IRS.

The professionals at Adams Capital, Inc. have substantial experience valuing closely held companies and stock options/bonus shares in the context of an impending IPO. We work closely with our clients' legal and financial advisors to ensure beneficial and appropriately structured valuation strategies that meet wealth maximization and compliance goals.

For permission to reproduce or quote this brochure, please contact info@adamscapital.com.

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©Copyright 2005, Adams Capital, Inc.
Updated April 2005
Adams Capital, Inc. - Business Valuation Services
600 Galleria Parkway, Suite 1850, Atlanta, GA 30339
770-432-0308 FAX 770-432-4138

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