Method for strucuring an equity issue utilizing a closed block business entity

US7359875B1 · kind B1 · utility

Assignee

• Goldman Sachs & Co. LLC · US

Inventors

• Michael Millette · Larchmont, US
• Michael ROTTER · New York, US
• Shiv Shankar Kumar · Pune, IN
• Omar Javed Chaudhary · New York, US
• Cliff Brokaw · New York, US
• David Govrin · Herzliya, IL

Key dates

• Filing date: Jul 6, 2001
• Grant date: Apr 15, 2008
• Expiry date: Feb 6, 2025

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q40/06
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

A method for structuring an equity issue comprising: (a) establishing a holding company as an owner of a closed block business entity, wherein the holding company is a subsidiary of a parent company and further wherein an on-going business is a subsidiary of the parent company; (b) representing an on-going business by a first class of common stock issued from the parent company; (c) issuing a second class of common stock in the parent company, wherein the second class of common stock represents an ownership interest in the closed block business entity and wherein the closed block business entity is a lower growth and lower margin business than the on-going business; and (d) classifying proceeds received from the issuance of the second class of common stock as assets of the on-going business.