MG Holdings/SIP™ - Corporate Advisory
Intelligent Equity Finance™ for Undervalued Corporations
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The Cashless Buyback - A Supplement / Superior Alternative to Corporate Share Repurchase Programs 

Are you a director, CEO, CFO or Treasurer of a public company?  Is your firm's equity substantially undervalued?  Has your board authorized a stock repurchase program?  A Cashless Buyback equity exchange offer can enable your firm to capitalize on undervaluation, expand or replace your buyback program, eliminate capital risk, make treasury a profit center, and sharply reduce director, officer and corporate liability for the 10b5-1 / 10b-18 / equity transaction conflicts that have attracted regulatory and legislative attention.  A Cashless Buyback conforms to world-class governance best practices while offering attractions for 3 key constituencies:  The firm itself, its shareholders and its management.

Principal Benefit: Capitalize on Undervaluation with Minimal Risk 

Undervaluation is an opportunity, not a problem.  Suppose a company's stock is trading at $10.00 with 100 million shares outstanding.  The company believes it can achieve a $21.50 price target within 6 years.  By putting in place a Cashless Buyback today, the company positions itself, as soon as it achieves its target, either to 1) receive a tax-free, "bonus equity" cash payment sufficiently large ($2.250 billion) to push its stock price to $44.00 or b) retire 51.1% of its outstanding shares at zero net cost.    Importantly, if the target is missed, the firm and its participating shareholders suffer no penalty - zero debt, interest, cash outflow, dilution or counterparty risk ever.  Tax and accounting are straightforward.  Terms are highly flexible.   

Secondary Benefits

At initiation, a Cashless Buyback may dramatically reduce or eliminate short interest.  Firms suffering illiquidity (daily volume below 2% of outstanding shares) will likely find trading substantially enhanced.  Access to equity capital markets is improved.  The shareholder base broadens. 

Cut Treasury Management Expense

Have you measured your cash buyback commission expense?  Gone the next step to measure your cash buyback program against VWAP (volume weighted average price) to determine efficiency?  Gone one step further to measure performance?  Have you considered the changing regulatory and litigation environment surrounding 10b5-1 / 10b-18 buybacks and, for instance, the conflicts with management stock options?  A Cashless Buyback addresses these concerns to make your treasury strategic cash management program a profit center instead of an expense and liability risk.

While all the various traditional forms of stock repurchase programs (including ASR's and forward contracts) place capital at risk, a Cashless Buyback does not.  A Cashless Buyback can be executed at low risk in a size that no alternative form of buyback can rival.

We Partner with Your Banking Partners

MG Holdings/SIP does not compete with your existing bankers.  We can architect and execute elegant, sophisticated transactions unassisted.  Still, your bankers have earned your confidence.  Whoever your bankers may be, we are ready to serve as their advisors if we serve you best by serving them.  

Cashless Buybacks

Intelligent Finance
Math, Not Magic™

Raise Equity Capital at Zero Cost
Repurchase Shares at Zero Cost
Make Treasury a Profit Center

Avoid 10b5-1 / 10b-18 Option Conflicts

Do it Riskless
No Debt
No Dilution

Antigravity Not Required™

Good for the Company
Good for Shareholders
Good for Management
                     MG Holdings/SIP, Jackson, WY  83001     tel. 732 221-0172