Corporate Shells

A corporate shell could be liken to a house that had been occupied by a family, prior to the family moving out it was a home. But now it is just shell, a skeleton a plain house with nobody in it, but if a family was to purchase the house and moves in, it becomes a home.

Similar, a corporate shell was once the home of an operating company but once the operating company ceases to reside there because of adverse circumstances ( bankruptcy or liquidation ) all that remains is the shell.

Buying and selling corporate shells has become big business, just a couple of years ago a corporate shell sold for approximately $150,000.00 today they go for upward of $500.000.00. Talk about inflation! The increase in price is due to increase scrutiny by the Securities and exchange commission and the demand for shell by Chinese companies seeking to become listed in the United States.

As usual when there is money to be made the vultures appear with their unscrupulous practices. In most cases the shells are own by the same operators who are also acting as consultants to the companies they are helping to become public. This may be a conflict of interest but they are able to hide their ownership well with the help of securities lawyer who may also have a piece of the shell.

The situation described above creates a huge conflict of interest that the regulators have yet to figure out because of the intricacy of the many participant who work in harmony and are able to conceal their actions from the regulators.

If the consultant indirectly own a shell and is trying to sell it to the company that they are advising, how well is he going to represent the client when it comes to price and the amount of shares that they are to Retain? And how about with assisting the company in performing the proper research on the shareholder list and the history of the shell.

Don't get me wrong there are many honest and well meaning consultants and shell vendors who established the shells for the sole purpose of creating a vehicle for private companies to go public, Just like you have the unscrupulous characters that appear every time there is an opportunity to make money, you also have honest enterprising individual who see an opportunity and take advantage of it.

Once the operating company purchases the corporate shell and merges into it, the owner of the private company receives a majority of the shell corporation stock (usually 90-95% ) through a new issue of stock for the private enterprise.

The public corporation will normally change its name to the private company's name and elect a new Board of Directors which will appoint the officers of the company. The public corporation will usually have a base of shareholders sufficient to meet the requirements for listing on the Nasdaq Small Cap Market of Nasdaq Bulletin Board. Although some shell have as few as 35-50 shareholders and are currently listed on Bulletin Board or the NQB pink sheets.

At our company we don't have an inventory of shells nor do we recommend a single vendor, instead we recommend several and after the private company selects a vendor we approach the process as if we were buying the shell for ourselves.

For more information please visit our website: http://www.genesiscorporateadvisors.com

Jos ephquinones@genesiscorporateadvisors.com

Joseph D. Quinones, President of Genesis Corporate Advisors has spent over 25 years in the securities industry. In 1992 he founded JDQ Financial Group, Inc. and proceeded to build it up from a one man operation to the point where it employed many traders, advised numerous client and generate millions in revenues.

---

Tell Me a Story: A Simple But Powerful Tool to Build Your Business

Everyone loves a good story. Whether it's the story of... Read More

Motorizing for Profit - The Craftsmen Have Left the Building

In the summer, I can't drive two blocks without seeing... Read More

Promote Yourself More Successfully

One of the great challenges for independent professionals and small... Read More

What is Rule 15c211 and Reverse Merger

Rule 15C211Under SEC Rule 15C211, a U.S. securities broker or... Read More

Not Listening Can Hurt Your Small Business

Most small business owners seek advisors who can help them... Read More

A Business Tail: Veterinarian Foams at Mouth, Chases Tail, Learns New Tricks--Case Study

Many self employed professionals find themselves overwhelmed, frustrated, and confused... Read More

Are You Making the Most of Your Intern?

KEEPING INTEREST HIGH: Supervision is key to the success of... Read More

Drivng Home the Point - An Outsourcing Story in China

A few years ago, I visited Beijing for the first... Read More

Presentations and Sales Automotive Detailers

Many auto detailers fall short in their sales presentations. I... Read More

How to Increase the Cash Flow in Your Private Practice in 30 Days

If you have a busy private practice, chances are you... Read More

Power Tools for Business

How do we keep track of our business deals?If you... Read More

Franchise Territories are Generally Delineated On a Map; Why?

If you own a mobile service or home based franchise... Read More

Everything I Need to Know About Business I Learned From My Nametag

So there I was ? sitting in the audience of... Read More

Venus Transit - and Small Business?

On June 8, 2004, the world witnessed what no one... Read More

Credit Repair Business Opportunities - Huge Profit Potential!

In the world today, many people are further in debt... Read More

Small Business Computer Security, the Basics

Anyone in business today realizes both the natural dependency on... Read More

Marketing Your Small Business - The Top 10 Brilliant Ideas

A Brilliant Marketing Idea... sounds great but what is it?... Read More

Small Business Marketing - How Important Are Your First Words?

"What do you do?" It just might be one of... Read More

Auto Detailers and Competitive Aspects of Automobile Detailing

There are both fixed and mobile detailers. Consumers often will... Read More

Pressure Washing; How to Bid Concrete Cleaning Jobs

Remember the cleaning business is all about time ratio to... Read More

Virtual Assistance for Healthcare Professionals

Administrative and clerical tasks are the bane of every industry.... Read More

Be Prepared When Business Investors Look Beyond Your Business Plan

You have spent considerable time pulling your business plan together,... Read More

Boat Detailers; Add-on Products and Services

As a Boat Detailing Specialist, you may want to offer... Read More

Naming Your Business: 3 Tips To Ensure Success

If you are just starting your business, or if you... Read More

Entrepreneurs and Franchisors Watch Out

New Franchisors and Entrepreneurs need to watch out as they... Read More

If You Want To Be Remembered...

Send handwritten notes. That applies whether you're a guy or... Read More

To Buy Or Not To Buy: Lawn Mowing Business

TRUTH IN THE LAWN MOWING INDUSTRYWe do not wish to... Read More

Looking for a New Office Chair?

Perhaps you are building a new home office or you... Read More

Tips and Tricks for Legal Debt Collections

If a customer owes your local business money, it's hard... Read More

Expanding A Mobile Car Wash Business

What is the best time to expand a mobile car... Read More

The Workers? Compensation Situation in this Country is Nuts, Arnold in CA Takes Action

The Workers' Compensation situation in this country is unbelievable. Why,... Read More

Do You Need the Help of a Virtual Assistant?

Running a business, whether large, small or in your home,... Read More

Small Business Support Equals Survival

Support is critical for your small business survival. You may... Read More