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Can I do a management buyout or a Spinout using Reg A+ ?

Can I do a management buyout or a Spinout using Reg A+ ?

Yes. If you form a new corporate entity with properly prepared pro forma financials then you can raise up to $75 million* per year by doing a Regulation A+ offering.

You can use this method to raise growth capital for the newly independent business. You cannot buy the business using this capital - the spinout or management buyout must occur first, afterwards, you can raise capital to expand the business. The type of company that will find it easiest to raise capital will have attractive pro forma sales and profit history, and will be known to a large customer base that is positively disposed to the products or services of the company.

*For businesses that lend themselves to segmenting their market, it may be possible to make multiple offerings by following a similar model to the one that Fundrise has used. Each Reg A+ entity is a standalone business and shares one management service provider. In this way, Fundrise has conducted multiple Reg A+ offerings simultaneously since 2016. So far this model has only been Qualified by the SEC in Real Estate situations, but the SEC may allow the same approach in other business areas.