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Article: Buying a 'shell' company can be cheaper alternative to IPO route.(Column)
- Article from:
- Los Angeles Business Journal
- Article date:
- February 3, 1997
- Author:
CopyrightCOPYRIGHT 1997 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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When most talk about "shell companies," or "buying a public shell," there is usually a hint of nefariousness in the air, possibly because of the unfair association with the classic "shell game."
Too, many companies in the past have purchased shell companies to short-circuit SEC regulators, or pull some sort of financial chicanery.
But buying a public shell can be a perfectly legitimate, and smart, move for many private company owners, says James McKillop, managing director at Santa Monica-based BKL Capital, a consulting firm.
Why not just go public through an initial public offering?
First, an IPO is an expensive proposition, with no guarantee of ...