Ways to Improve Investor Confidence and Obtain Private Equity Investments – Part 1
Many businesses attempt to raise capital to finance their current operations, expand their business, or adjust their debt/capital ratios. In order to do so businesses need to tap either public or private equity markets. While public equity markets provide businesses with the ability to generate significant amounts of capital, there are many costs associated with doing so. Being listed on a public exchange requires registration with the SEC (S-1 filing), regular quarterly (10q) and annual (10k) filings, and significant legal, accounting, and administrative costs associated with doing so. Many businesses determine that it is not cost-effective to become publicly listed and instead choose to remain private.