PRIVATE-EQUITY INVESTORS
GREEN ACTIVE INVESTORS

Robert A. Green, CPA, created Active Investors in the late 1980s as part of a client-led acquisition of a French industrial company with an exciting green energy division.

Green and Company bought the French firm out of the Paris bankruptcy courts, enabling the company to write off the entire investment as a restructuring cost. A client of Green & Company had been the CEO and majority owner before bankruptcy.

The active investors in the U.S. management company who invested in the French firm all played useful roles managing the company. Each invested $50,000 in cash up front and $75,000 in expenses over a three to five year time period. Tax rates were higher in the ‘80s, and all the investors made money on the tax benefits alone within several years. This was all done after the passive activity loss rules were effective - using our active investors idea which navigates around the passive-activity loss rules - and there were never questions or trouble from the IRS. There was a rock-solid tax opinion as well.

The French company had five leading (small-scale and factory-built) waste-to-energy projects in the U.S. and close to 40 operating successfully in Europe. Unfortunately, the firm was ahead of the curve and far too early to catch the recent explosion in the U.S. green alternative energy market.

In addition, the French bankruptcy courts were rampant with fraud at the time and they tried to cheat the American investors. Green and Company ultimately saved the company and the French jobs and increased sales by well over 100 percent. But a few prestigious Wall Street investment bankers who were among our active investors insisted on punting the company back to the courts to deal with the fraud issues. At the end of the day, the company and the investment were a success thanks to the active investor tax breaks

With green energy success opportunities (projects, income and tax breaks) available now you have a winning formula. Now is the time to roll out a green energy business, even with oil prices temporarily headed lower again.

We plan to soon offer several free conference calls to discuss these strategies and opportunities, so please join us. To receive your invitation, kindly join our email list (dialog on the bottom of any Web page). Select the GreenEnergyActiveInvestors list only.

If you have any questions about our other services, please e-mail us at greenactiveinvestors@greencompany.com or call us.

If you would like to consult with Robert A. Green personally on these ideas, please sign up here.

The content below has been on our site for years and we are updating it soon, as part of our GreenEnergyActiveInvestor.com initiative.
____________________________________________________________

Using our groundbreaking strategy, Green Active Investors, you can raise new money and your investors will make money from day one with tax benefits.

Many startups are being cut off by their venture capitalists
As reported by the Wall Street Journal and many other publications, many dot.com startups are facing bankruptcy. Their venture capitalists are withholding additional rounds of finances as IPO market opportunities disappear.

Venture capitalists funded expensive startup business plans in a land-grab game of who can be the biggest and best on the Internet first. The more money spent on advertising, systems, overhead and human resources the better, because the goal was winning your space. If you were successful in winning eyeballs, press and buzz, then an IPO could be arranged in that frothy market and the venture capitalist could be rewarded well. If a few startups crashed and burned, that was OK for them because as long as one in five or 10 made it, they would do very well for their venture capital efforts.

Now the frothy market has disappeared and venture capitalists figure the odds for success to be much harder. The result has been to pull the plug on many startups.

There need to be changes in how things are done going forward. We never believed in this land-grab game for the big pay-off. It worked gloriously for a few years but we don't think it will work over the next few years.

We have operated an Internet-based business in our space (Trader Tax market) for the past few years and operate at cash net income levels that any business would envy (well over 50 percent). See our new "Green & Company ActiveInvestors™ Tax and Business Guide"© for more views on operations and efficiencies.

ActiveInvestors™ is the next-generation way to finance startups
ActiveInvestors™ is the next-generation way to finance startups and to help startup entrepreneurs reach their promised land.

ActiveInvestors™ provide startups with fresh rounds of cash capital, additional or replacement human resources (from their own home offices with no new overhead for the startups), and reorganization techniques to avoid bankruptcy.

ActiveInvestors™ invest time, money and expenses into your business. On the upside, the Investors receive good equity returns and on the downside they receive significant tax benefits. In many worst case scenarios, some ActiveInvestors™ are prevented from losing any cash investment and they only risk their time and effort.

Many successful professionals and executives in the old world economy, law, accounting, advertising, promotion, sales and others have money and a great job but no additional means to execute their dreams. These ActiveInvestors have the funds and the desire to join your team on a part-time basis. With our ActiveInvestor™ structure preventing them from losing money (tax benefits), they have nothing to lose and everything to gain. These ActiveInvestors™ can spend their nights and weekends working for your company for no salary from their own home office. They can provide you with a new round of cash equity and are at your beck and call for help.

Tax advantages are the key to making ActiveInvestors™ work well for both you and the investor.
The tax advantages are the most important component of this program and our element of expertise as a tax and accounting firm (comprised of CPAs and tax attorneys).

ActiveInvestors™ are "active" not "passive" in your company's operations. Your company structure is changed to be a "flow-through entity" like an LLC or S-Corp.

ActiveInvestors™ then receive a K-1 for their share of your company's tax losses. ActiveInvestors™ have "tax basis" for their cash invested plus their home office and other expenses committed as an active participant.

Congress changed U.S. tax laws in 1986, closing the loopholes that allowed the earlier proliferation of tax shelters. Congress created the new "passive loss" and "at risk" rules, which together took away the guts of tax shelters. Investors were no longer allowed to take losses as passive investors (real estate tax shelters, oil & gas deals) and when they were not at risk for the company's debt (movie tax shelters).

Tax strategies can be complicated and in each case we customize them for each startup’s individual situation. For example, we will develop different strategies for healthy companies, cash-starved companies, companies facing bankruptcy, companies in bankruptcy and companies coming out of bankruptcy.

Green & Company created ActiveInvestors™ in 1987 and used it successfully to save a company and make money for ActiveInvestors™
Green & Company created ActiveInvestors™ in 1987 as part of its acquisition of a large French railcar manufacturer that was going into bankruptcy. Green & Company clients pooled their money and know-how together in a holding company that was successful in acquiring the industrial company. We saved the company, its management and most of the jobs. Our ActiveInvestors™ got all their cash investment back plus a good return on tax advantages alone.

Green & Company’s Services
A new "Green & Company ActiveInvestors™ Tax and Business Guide"© is coming soon.
We also offer our entire line of professional tax, accounting and legal services to consult you on ActiveInvestors.™ We can provide you with full tax structure details, materials to present potential ActiveInvestors,™ tax opinions on the tax benefits and structure and advice on how to proceed We can alsos execute the legal paperwork, change your company entity structure if need be, prepare your tax returns and K-1s for ActiveInvestors,™ tell you how to handle tax accounting related to the ActiveInvestors™ cost basis for cash and non-reimbursed expenses, and all your other related needs.