Equity Financing: Financing The Growth Of Your Business Differently
The moment your company goes public, you greatly expand and diversify your sources of equity financing. You are no longer dependent on traditional bank loans. Best Trading Course in Australia Your business can now raise capital much more easily and at a much lower cost, whether through the issuance of convertible securities, share capital, rights or warrants. In addition, your pool of funders grows considerably, going well beyond the founding shareholders, your banker and your very close friends and relatives. All of these equity financing tools allow you to manage your business growth more aggressively and take advantage of new business opportunities.
Equity Financing: Facilitating Mergers And Acquisitions
The company listed on a stock exchange enjoys a significant advantage for its expansion plan. From now on, it is possible for you to carry out a business acquisition by using the shares of your company as the currency of exchange. Such an option gives you more flexibility and thus increases your chances of success in negotiations. In addition, this method of financing allows you to manage your growth more aggressively since you are no longer limited to conventional methods of financing.
Equity Financing Gaining A Good Reputation
By taking the decision to transform your business into a public company and opt for equity financing, you give it greater visibility. First of all, the initial public offering will be an opportunity to make the company known to investors by means, among other things, of promotional tours organized by the brokers participating in the issue. In addition, public companies can be monitored by financial analysts, which is an asset in marketing the company's products and services.
In short, your company is in the spotlight, its notoriety will inevitably increase, both among investors and economic partners. In addition, for many customers and suppliers, doing business with a listed company is reassuring. They see it as a sign of a well-established society. Such perception can facilitate the conclusion of a sale or a supply contract.
Equity Financing Increases The Market Value Of The Company
A better cost of financing, greater liquidity for your company's shares, improved growth potential, as well as increased visibility are all elements that make the market value of your company significantly higher than what you would expect. attributed to him before becoming public. From now on, the book value will no longer be the main element used to determine the value of your company. Your company will be worth what investors recognize as value based on its potential for growth and profitability as well as its performance relative to competing companies operating in similar sectors.
Easy Succession
It will be much easier for you, when the time comes, to retire from your business and realize the fruit of your years of effort. You will then be offered several options, including disposing of your shares through a secondary placement. It will also be possible to attract talented people to take over because of the many advantages that public company status confers.
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