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

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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 $50 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 can segment their market by geographic regions, it is possible to make multiple simultaneous offerings for one entity.

For example, a company can establish say six regions of the US and raise capital for each region simultaneously using a dedicated Reg A+ for each region. In this example, the maximum per year would be 6x50 = $300 million per year.