Corporate Engineering is the process of developing, implementing and maintaining all of the corporate governance policies, procedures and protocols necessary to prepare and qualify a company and its securities for a publicly traded listing on a U.S. securities exchange. Proper corporate engineering inherently prepares a company for the highest possible private or public valuation for a private (Corp. Acquisition, ESOP, Mgmt. Buyout) or public (IPO) sale. Proper corporate engineering involves the creation of the correct legal, operating and financial structures to mitigate risk and maximize returns for investors, while enabling the founders to maintain the vast majority of equity ownership and voting control and wealth created.
Corporate Engineering is a practice utilizing standard principles to govern a company’s organization and operation. For start-up and early stage companies, corporate engineering focuses primarily on mitigating operational, financial, and litigation/regulatory risk, by design. All Corporate Engineering starts with creating 5-year pro forma financial projections that are GAAP (Generally Accepted Accounting Principles) compliant. These pro forma financial projections set operating budgets; determine the optimal capitalization mix and financial structure and establish defensive regulatory and litigation protection protocols on a 5-year macro level, leaving you with operational flexibility while providing investors with a reasonable illustration of a return on investment. Through proper corporate engineering, entrepreneurs build companies that can withstand the rigors of a competitive business environment and hence reduce the risk of investment loss for investors.
Secondarily, proper corporate engineering is designed to enhance revenue generation and profit maximization. This is also done when creating the 5-year pro forma financial projections by setting realistic sales goals; cost of goods sold or services delivered cost structures; customer service policies and protocols, as well as attractive executive compensation packages. Sales and marketing plans are illustrated through channel distribution models; efficient and effective “social proofing” (proof-of-concept research) and social crowdsourced incubation (sales list building) for validating revenue assumptions. Most importantly, by establishing executive cash and equity compensation, the company can attract the quality management talent necessary to implement critical expansion plans, thereby maximizing potential investment returns.
Proper corporate engineering also prepares start-up and early stage companies to expand operations using equity or debt securities as currency to purchase strategic acquisitions and build strong income statements and balance sheets to secure traditional debt capital without the need for personal guarantees by the company’s founding principals.
Due to the inherent risks associated with investing in start-up and early stage companies, proper corporate engineering is critical to attract investment capital and management talent.
For young companies that have yet to be properly engineered, we provide automated standards of proper corporate engineering in our Corporate Engineering Conservatory™. Through a progressive series of online exercises, procedures and executions in our Corporate Engineering Conservatory™ we enable entrepreneurs to build companies that we, as well as other investors, want to invest in.
Proper Corporate Engineering is required to take any company from “Idea to IPO.”
We would like to know more about your company and how it might fit within our investment criteria. We have automated the process with our Capital Access Portal below to conduct our initial due diligence review on your company to further your company’s qualification for funding.
(RESTRICTED ACCESS: Must be invited by a Commonwealth Capital Managing Director)
If you would like to be assigned a Managing Director Contact Us