SOURCE: Xpert Financial

Xpert Financial

April 14, 2011 07:30 ET

Xpert Financial Releases Standardized Private Company Investment Due Diligence Document, the X-1

Private Company Due Diligence Made Simple and Consistent

SAN MATEO, CA--(Marketwire - Apr 14, 2011) - Xpert Financial, Inc. today announced simplified and streamlined investment due diligence documents for private companies seeking to raise capital from private market investors. Less complex than the S-1 document filed by companies raising public capital, the X-1 provides companies and investors with a common format to communicate and understand business performance, risks and liabilities.

"Raising capital for private growth companies has become a full-time job for management, who really should be focused on growing their business," said David Pearl, VP Operations, Xpert Financial. "Xpert Financial's X-1 allows companies to compile data once and subsequently provide equal access to this data for any number of company-authorized investors using the Xpert ATS platform."

Xpert Financial developed its proprietary X-1 document specifically to provide qualified private market investors with the information they need to make sound investment decisions. Xpert has worked hand in hand with private companies and members of the institutional community with the goal of creating a document that meets investors' needs without subjecting the listing company to the full demands of SEC registration.

In terms of content, the X-1 is a simplified version of the standard S-1 form that companies must file with the SEC before going public. It contains basic information such as an overview of the business, description of markets and products, go-to-market strategy, risk factors, etc. The difference is that Xpert used input from Qualified Institutional Buyers (QIBs) and private companies to streamline the S-1, removing redundant elements and those that aren't applicable to private companies. The result is a concise, focused and now standardized document (in the same fashion as an S-1 or a private placement memorandum) for evaluating private companies.

Financials that have been audited by a Public Company Accounting Oversight Board (PCAOB) registered accounting firm must accompany the X-1. The combination of these audited financial statements and the X-1 provides QIBs and accredited investors with the information they need in order to make an informed decision in a relatively short period of time. This abbreviated timeframe can significantly increase a private company's pool of potential investors.

"Developing a standard starting point for private growth companies to communicate with the investors they select is essential to attracting high-quality accredited investors and qualified institutions," said Thomas Foley, CEO, Xpert Financial. "Our goal in providing these documents is to ensure that both buyers and sellers have similar information and due diligence prior to entering into a transaction."

About Xpert Financial
From its inception in 2009, Xpert Financial has focused on building a platform that benefits companies and investors in the market for private company securities. The company, through its FINRA-registered broker-dealer subsidiary Xpert Securities, operates Xpert ATS, a fully-electronic Alternative Trading System for private company securities that is registered with the United States Securities and Exchange Commission. Xpert ATS supports both primary offerings and secondary trading of private company securities. Trading of private company shares are controlled by the issuing company. Private companies, qualified institutional buyers and accredited investors that are interested in more information may pre-register at www.xpertfinancial.com.

Disclaimer
There can be no guarantee that the Xpert ATS trading platform will perform in the manner desired. Companies available for investment through the trading platform are not subject to the regulatory scrutiny required of publicly traded companies. Consequently, information upon which to make an informed investment decision may not be readily available.

Contact Information

  • Private Company and Investor Contact:
    Nick Nolan
    Director
    Xpert Financial
    650.375.2424
    Email Contact

    Media Contact:
    Tenor Communications
    Email Contact
    650.200.3163