Distribution channels for US products in Shanghai

Re: [spiers] Distribution channels for US products in Shanghai

Albert,


During the fraudulent dot.com boom, I got in on an IPO at 22 cents and
sold at $13... and only because I was self employed importer was I
privy to the opportunity (I am sorry I only had a few thousand shares,
some of the people had tens of millions of shares they unloaded). This
all happened very fast, so what I know I learned very superficially.
I recall at the time the rule of thumb was to have some 100 million in
revenue per quarter before you go IPO...and I heard this only in
context that during the dot.com boom no one bothered with this rule of
thumb. I believe it is back in place.

As I understand the IPO, it is the practical way a successful innovator
converts to a conservator. We innovators compete on design. The
conservators compete on price. To compete on price one must have the
economies of scale in manufacturing, distribution, warehousing and
finance that being big offers. The IPO allows you to get enouogh money
to get big.

To make a long story short (too late!) one approaches Morgan Stanley or
some other merchant banker who employ people earning 50 milliion a year
put together the deal. You'll need a dozen of these people for about
a six months of their time. Is it likely your deal can pay these guys?

On the other hand, study Expeditors international, you can find them on
the web, a leader in the field of int'l trade logisitics and brokerage.
One fellow in Seattle in 1979 started a business that has grown
worldwide, and all he had was a typewriter and a telephone. A young
woman I taught how to clear shipments thru customs went on to start her
own custombrokerage, and now is quite happy with four offices and more
business than she can handle.

There are likelier ways to grow than an IPO. Others?

John

[spiers] Distribution channels for US products in Shanghai

Mr. Spiers,

My brother-in-law who has a thriving forwarding
business in Shanghai, China wants to IPO his company
in the United States. Can you or anybody tell me what
are the qualifications and processes to accomplish
this? Or if you may, direct me to any publications or
web sites so I can research it myself? At last, how
about any legitimate consulting businesses in USA that
could package the process and their service charges?

Thank you ahead for your attention and help.

Yuk Sung (Albert)

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