Woodbrook Group Holdings Inc (WDBG)

[fojcol]

If he does an IPO he gives away part of his company for the investment capital the IPO supplies. In this R/M, in order to do an APO he needs a large number of existing shareholders (hey, that's us!). Okay, they (may) make money. He'll likely increase the A/S count to (say) 3B. So that would mean he'll be able to sell off 1.8B shares (3B - 1.2B O/S) (assuming he hasn't repurchased a goodly portion of the O/S). Let's say the market ends up capitalizing his company at 360M (2 X likely revenue with 9B AUM). This works out to .12/share X 3B. How did he get to 9B AUM from 2B AUM? By buying wealth management companies with the 1.8B X .12/share = 216M he raised from going public. By the way, at that point, his 24M shares are now worth 24M X .12 = 2.88M + a much larger salary than he makes now, with the promise of a growing share price. I think that in financial services there's an economy of scale (like in most businesses), where as the $$$ increases, the % of profit $$$ does too. That's what he's after. To become a real player!