Distribution channels for US products in Shanghai

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


-----Original Message-----
From: ALBERT SUNG
Date: Sun, 18 Sep 2005 10:09:14
To:spiers@yahoogroups.com
Subject: Re: [spiers] Distribution channels for US products in Shanghai

John,

Thank you very much for your quick response and kind
info.

100 million in revenue per quarter is not where my
brother-in-law is at right now, so I understand IPO is
not the way to expand his business yet!

However, do you think Venture Capitals a more
realistic way to go? If yes, can you please brief me
on the rule of thumb of revenue requirement and how to
gather this kind of private capitals?

Thank you again.

Yuk Sung (Albert)


--- wileyccc@aol.com wrote:

> 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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