Raising Money for business in ways other than debt is termed as Equity. In simple terms, Business owners offload their share of profit to private or institutional investors for raising funding.
Equity is usually about taking an existing company with existing products and existing cash flows, then restructuring that company to optimize its financial performance. When private equity works right, it can save poorly-performing companies from bankruptcy and turn them into profitable enterprises.
Businesses call for equity infusion at different stages:
Seed Funding – Investment done at the conceptualization / start of the business.
Angel Funding – Investment done at early stage of business considering the potential of its growth.
Private Equity – is a way of investing into Private Companies which have potential for high growth but are constrained due to funds. Growth in the business is delivered by working with the company’s management team to improve performance and strategic direction.
SME IPO – is a platform for small and medium enterprises to raise capital by listing on the SME Stock Exchange. This provides an opportunity for the company to raise capital for expansion of current project, undertake new projects, diversification and acquisition. This mode of fund raising through infusion of equity can help the Companies lower the debt burden leading to lower financing costs and healthier balance sheets for the Company.
At Midson Advisors, we play a very important role in connecting our customers to potential investors and institutions who are keen to invest in profitable business opportunities looking for growth and stability. The investor / institution are always on a lookout of new markets and growth sectors. Midson helps companies in the growth stage of their life cycle get finance through above mentioned Equity options resulting in financial stability and growth.
Contact us to know more about any of the above services and we will be glad to serve you.