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Targeting Restricted Stock

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Nov 18, 2009 7:40 pm

Dear Vets,

  Im thinking about targeting company insiders and targeting mid level management for their restricted stock.  I think this is a very attractive market as these people have money and will require the services of a FA.  I have read most of the 144 rules, but dont know the logistics of doing an actuall transaction.  Can people here with this type of experience shed some light for me please? first, how do you traget the management. I know there are bunch of leads companies that specialize in company management info. I guess you would call and say that you specialize in this area and that you can offer volume discount and offer other services such as hedging concentrated positions ect.. ect..   I'm interested to know all the specific step required to sell shares. I know its necessary to remove a legend after a required time, but who is responsible to do the volume calculations and set the number of shares that could be sold?? Also, which group is the best to go after?? The new recently hired management team or to more veteran groups??   any other information or experience you can share??   I would appreciate the detailed responses. I'm totally new in this are and need as much details as possible. Please dont post of you want to make fun, or take up unnecessary bandwith. please keep this thread very educational.  I appreciate all the responses  and thank you in advance for your shared knowledge. God Bless!!
Nov 18, 2009 11:07 pm

Beware that this is THE most competitive part of the market. This is generally where firms like GS, MS PWM, Bessemer and the best equipped RIAs compete for business.  It is, however, very lucrative and many times even fairly large executives can be underserved.

My recommendation would be to become VERY familliar with the business. The average public company executive will know much more than the average retail broker about Rule 144 and you can easily waste a good lead if you don't do your homework. If you can, try to partner with someone who knows this business for a while before going along. Also - subscribe to This site will have answers to almost any question about equity comp.
Nov 19, 2009 3:36 pm

Sf Broker,

  Thank you for your response. I do agree that a lot of FAs do target high level executives like GS and other high end PW firms, but I think the mid level management could be a lucrative segment and from what I see around my office I strongly think that segment is very underserved.  I think they key thing to win is offering volume discount over ther competitors.   The reason i think this segment is underserved is being an expert and there is a lot of things you got to know to service this area. like you said, you have to have partnered with vets that know this business in and out.  And I find that those people hate sharing their business with outside FAs.     Please keep the posts coming...