Equity from Start-Up to IPO
In pursuing growth, small and medium-sized businesses must make important decisions relating to their capital structure. US Capital Partners can help these enterprises at all stages from start-up to pre-IPO.
CEOs and business owners have been feeling increasingly optimistic about the outlook of their companies. According to the 2016 Pepperdine Private Capital Markets Report, nearly 88% of privately owned businesses reported having the enthusiasm to execute growth strategies. Securing intelligently structured financing at every stage from start-up to pre-IPO is essential for long-term success.
Choosing Wisely: Debt or Equity?
Understanding the strategic advantages and disadvantages of debt and equity financing at various stages of a business is critical. Some entrepreneurs manage to make million, if not billions, more than others by being careful not to sell too much of their business too soon. The capital structure you choose early on can have wide ramifications, not only for your future success but also your profits.
Structuring an Equity Raise
If you decide to raise private equity capital, you will need to make sure the deal structure is appropriate for your specific needs. In the early days of venture capital, entrepreneurs often gave up control of their company in exchange for their first investment funds. Now they have many more options, allowing them to create an optimal share structure for their enterprise.
How Not to Get Burned Going Public
If you are planning to go public, you will need to take steps to avoid a “busted IPO,” where your newly public shares fall below their offer price. This can harm a company’s reputation with investors, as well as hurt employee morale. It will be important, therefore, to set a price that leaves some room for stock to rise. There are many other important decisions you will need to make too.
How US Capital Partners Can Help
Since 1998, US Capital Partners Inc. has been providing well-structured debt and equity financing to small and medium-sized businesses across the United States. The firm provides its clients with strategic guidance and tactical advice on key issues such as capital formation, structure, securities valuations, pricing, timing, and terms. In raising private equity capital, US Capital Partners has an extensive and robust distribution network, and uses the latest in FinTech digital platforms for its offerings.
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