Leveraging the expertise of its officers and directors
in deal sourcing and technology commercialization,
Puget will utilize an integrated, four-pronged strategy to identify and cultivate companies with the potential for industry disruption and market leadership. And unlike other companies that typically focus on only one of these areas, Puget intends to combine all these strategies, offering a one-stop shop for our portfolio companies and increased synergies and profits for our shareholders.
ACQUISITION GROWTH INVESTING
We will strategically pursue acquisition opportunities that align with our philosophy and exhibit certain favorable attributes, such as the potential for industry disruption with a new technology or business model and multiple alternatives for value creation such as geographic expansion, organic growth potential, cost-saving options, and value chain integration. We may use different approaches to acquire these opportunities, including growth capital, in which we deploy resources to gain ownership of target companies
who are as of yet unable to obtain more traditional financing, or acquisitions in which we gain a controlling interest in the entity. With all our acquisition investments, our focus will be on post-investment value creation. We will support our acquired companies either by direct management involvement or by integrating them into our Pre-IPO Incubator program - with the ultimate goal of helping the existing management team reach their full potential.
Many high-growth companies get to the point where they need an exit strategy for their founders and investors, but are not ready for the high-risk stage of operating as a public company. This is where Puget can assist with its Pre-IPO Incubator program. Accepted companies will participate in a three to five year incubation program in which they will function as a subsidiary of Puget. During this time, the subsidiary will maintain control of most of its own operations, but will be coached on all aspects of functioning as a public entity, including internal controls, financial reporting and disclosure, communication strategy, and more.
Over the long-term, we plan to organize and manage a business development company as a subsidiary investing in promising development stage companies and providing them with consulting and management assistance, either through Puget personnel or through contracted third parties. This business will operate as a business development company under the limited exemptive provisions of Sections 54(a) through 65 of the Investment Company
Act. We will seek out companies in need of financial resources and managerial support with market values of less than $250 million. Through this strategy, we will offer the opportunity for smaller, non-accredited investors to be involved in our mission, and will offer the acquired companies access to our network of experienced operational professionals. As with all of the companies in our sphere of influence, we also will look to these investments as potential candidates for our Pre-IPO Incubator program.
SPECIAL PURPOSE ACQUISITION COMPANIES
We also plan over the long-term to sequentially organize and manage a series of Special Purpose Acquisition Companies ("SPACs") that will assist in funding for operating companies that desire to go public without going through the traditional IPO process. The opportunities we seek may include portfolio firms from our other lines of business in which we have invested and helped to drive growth, or we may identify new targets with significant potential for post-merger growth.