Want to Sell Your California Company? Nevada Offers a Buyer Solution for You

The Reno Gazette-Journal carried a story yesterday with the descriptive headline, “Plan afoot to encourage Nevada firms to buy California companies & relocate them to Nevada.”

It describes Gov. Brian Sandoval’s efforts to diversify Nevada’s economy, and with the help of the Legislature, the Nevada Capital Investment Corp. was created to boost investment in the state.

The story said:

Last week, it hired the firm Hamilton Lane to handle $50 million in funds, with the requirement that 70 percent be for businesses that are Nevada-based.

Having the private sector and the government working together in this way is new.

“In the years I’ve been here — and I’ve been here 25 years — I’ve not seen that kind of energy before, and I’m encouraged by it,” said Chris Howard of Northstar Investors, which is a holding company that owns and runs other companies.

He explained how buying California businesses works:

You find a company in California that needs money to grow [and] investors … will then say they’ll provide the money on the condition that you move to Nevada.

“Relocation becomes part of the deal,” Howard said.

Another way it could work is if a company here in Nevada knows of a competitor it would like to fold into its own business, but it can’t swing the money to make it happen.

See the full story at RGJ.com.

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