"Finance"

“New Market Emerging for Entrepreneurial Firms”

Investing in the stocks of publicly-owned companies is much easier than it was a generation ago. Whether the company allows direct stock purchases or makes its stock available through brick-and-mortar brokerages or online sellers, it’s easy for seller and buyer to connect. To help evaluate prospective stocks, buyers have magazines, online tools, benchmarks and rating systems at their fingertips.

By contrast, the options have been limited for those who are interested in investing in private or non-reporting public companies. This, in turn, has limited the possibilities for these companies to raise capital.

Today, the situation has changed. Entrex (www.entrex.net) has created a transparent marketplace for entrepreneurial businesses which mirrors the methodologies of the public market. In essence, Entrex has taken public market infrastructure and adapted it to create a venue for investing in private and non-reporting companies.

Entrex’s goal is to help investors find, research, track, manage and trade interests in entrepreneurial companies—provided these companies adhere to Entrex methodologies and disciplines. The multi-step process is simple, yet thorough, and favorable outcomes result in the business becoming an Entrex Ensured Company. Like CNN said, it’s “a type of good housekeeping seal of approval.”

By submitting to the Entrex process, companies provide the financial community with a whole new level of consistency and transparency. This creates a new asset category for accredited investors, institutional investors and hedge fund managers. Which in return, creates a whole new opportunity for both growth capital and liquidity for the shareholders of private and non-reporting companies.

Much like the evaluation of public companies, Entrex focuses on who, what and why.

WHO is provided through a 10-year background check of the company’s chief executive officer and chief financial officer. In addition, a 10-year business review is provided showing any litigation and legal licenses.

WHAT summates both historical and projected financials in a consistent format, which sounds simpler than it is. An on-site visit is conducted with pictures taken of the physical property and any assets which represent more than 5% of the balance sheet.   Finally, a series of validation steps is conducted which confirms customers, vendors, debt instruments and shareholder listings. This data is consolidated into both an electronic database posted by Entrex and validation books which provide distribution and updates on a quarterly basis.  

WHY is performed quarterly by independent researchers. Entrex works with various independent research companies and their professional certified financial analysts to establish the value of a share of the company on a routine quarterly basis. These analysts take into account the industry sector, market conditions and management representations which ultimately justify a valuation pursuant to the investment environment.

Collectively, this process provides the investment community with the “who what and why” of a private or non-reporting company. By establishing methodologies which correspond to the public marketplace, Entrex provides a whole new asset category of investment opportunities for professional investors.