Entities capital requirements all vary and in just about every entity there is a constant focus on having enough capital. The question then comes as to how you raise the capital you require.
What is it?
Capital raising is about ensuring you have sufficient funds to enable the entity to operate its business and deliver on its strategic vision. It is about raising the funds necessary to grow the business, meet the cost of its projects going forward, acquiring assets and simply operating day to day. There are various forms and structures of capital, debt or equity that can be looked at and used. Share purchase plans, equity facilities, private equity raisings, borrowings, convertible notes, options, IPO’s, the list goes on. What are they, what is appropriate, how much do I need, how much can I actually get, who do I work with to achieve the result? These are just some of the questions we can help you deal with.
Why is it important to the Board?
Ultimately the Board is responsible for ensuring the entity operates with sufficient capital behind it or available to it. If the entity ends up in an insolvent position because it has not been able to raise sufficient capital or to have that in an appropriate form, then it will be the Board that is held responsible and liable. A number of forms of capital raising, such as IPOs, bring with them significant potential liability and exposure for the Board and therefore need to be managed carefully.
What is in it for you?
Access to experience and an objective view to ensure that those questions are answered properly and the capital raising is implemented efficiently. It is not just making the decision to raise the capital, but project managing the raising to ensure it occurs in a timely manner and with costs controlled.