We have already discussed benefits of an initial public offering. It enables you to raise huge amounts of capital, attract more attention from media and investors. When you go public shares of your company are like currency which can be traded which means that you can raise more capital by selling more shares.
Many of our clients who wish to go public also need private equity financing along way. Even though our IPO process only takes between four and six months, companies need operating capital in order to continue building their businesses while waiting for the various IPO processes such as the SEC, FINRA, market makers and more.
In simple terms private equity financing means that some individual or firm will invest in your company for a percentage of business. For a long time private equity investors only did business with large multi million dollar companies. Recently they have expanded into small business financing. It has its advantages from traditional loans. Not only you don't have to pay back monthly rate and interest, private equity companies have more flexibility.
MinaMar Group can help raise private equity via a private placement memorandum (PPM) while our clients are in the IPO process. We will work with your investors to help bring in capital to fuel your business. Our team of analysts will write private placement memorandums and help you structure your company in order to raise between $1 million and $5 million via private equity.
Private placement memorandum is also known as private offering document is a securities disclosure document used in a private offering of a securities. The purpose of PPM is to obtain needed information about the security and the company to allow investors to make an informed decision. it contains several chapters; summary of offering terms, risk factors, estimated use of proceeds, description of the securities, management section and it can include several supporting documents.
Our clients tell us that this two-step process of raising private capital and then raising capital and public markets is a viable alternative to traditional venture and angel rounds of financing. We find that it is easier to help our clients raise private equity with an eminent IPO versus traditional angel or venture financing where liquidity may be 3 to 5 years away. If you’re interested in discussing how we can help you raise private capital while you are in the process of going public, please contact us right away.
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