HATTIE: Number eight. Sell over time into private equity capital market.

This is the new business revolution that is opening up small business investments, making us attractive for qualified investors, yet the general public is not excluded. There are now many secondary markets where your sold stock will be valued and can be resold. You can be taking your equity out slowly, over a period of time and not have the pressure groups -- particularly the venture capitalists or the angels -- poking around in your day-to-day business. Upon your final exit, your business is in the hands of management and owned by a diverse public.

It is a public offering without doing an IPO or a DPO. This is huge. It is important, so we will spend a little more time examining the private equity market. This is one of the beginning points for creating substantial wealth.

STEVE WATKINS: The message here is that wealth is made through transactions and equity.

HATTIE: (Voiceover) Steve Watkins, founder of ENTREX speaks to the Boston CEO club about what he calls the fourth market.

STEVE: Company value is a function of exposure. It’s a function of credibility and in the end it’s a function of the liquidity options that the buyers have for your company. So let’s talk about those liquidity options. You’ve obviously got the public market, you’ve got the New York Stock Exchange, the NASDAQ and you’ve got American Stock Exchange.

In the private market place -- what we’re trying to create here -- is a fourth market, a market for the public trading of private shareholder interests. So we have gone out and worked with an SEC-sanctioned exchange to create a reporting infrastructure and then a trading infrastructure that supports the shareholder’s interest in these companies. We call that the fourth market.

Its the public market for private company shareholders. By creating this mechanism that allows private companies to report through this informational platform and by working together with and SEC-sanctioned exchange that can now get your company symbol and knowledge out across the investment marketplace it allows the investment community to work through their broker dealers to learn about these private companies that have publicly traded shareholder interests.

My job is to try to bridge that arbitrage gap between the multiples of private companies and the multiples of public companies. The fundamentals have to be the same. It’s not a miracle. But it’s by putting the effort behind that we can end up providing some exposure, creditability and liquidity for your company. Our intent is to do that through this 4th marketplace.