Welcome to my “Where to find market share of a company.”
We have to take into account that in both cases we donate some of the shares in our company to the acquired investor, "says Sebastian Filaber, President of the Opulentia S.A. - If the company is at a very early stage of development, it is usually a combination of partial withdrawal and so. The subordinated loan repaid with the appearance of the first profits from the realized investment. A significant advantage of acquiring an investor and being a shareholder is rather a stable development of the company. An external investor before engaging financially in our venture will still carry out a business analysis of our project. The positive opinion of the investor is an additional confirmation that the planned investments have a market justification and the risk associated with them is well calculated. Acquisition of capital through the stock issuance and entry into the Alternative to the Warsaw Stock Exchange NewConnect market is reserved mainly for knowledgeable and experienced entrepreneurs (formal requirement - joint stock company or joint stock limited partnership).
"We are talking about a very formal process that requires the involvement of NewConnect Authorized Adviser, the Brokerage Office and several months of preparation of relevant documents, including the Information Document, in which prospective shareholders will find all important information about the company," adds Sebastian Filaber, President of the Fund's Board. Opulentia SA - So far, over 390 joint stock companies have benefited from this form. The new issue of shares and the capital raised in this way will finance the further development of the company. Subsequent emissions are already less complicated operations, and the capital they receive is cost-effective. However, as in the case of acquiring a strategic investor, it is important to remember that the main shareholder has to count on the fact that every new share issue addressed to external investors "dilutes" its share in the Company. See Financial and accounting services. How much is it? It is important to realize that acquiring capital from NewConnect is a time consuming and costly process. This solution should be considered as the beginning of a road in which appropriately exploited opportunities can build the value of an enterprise. After achieving the appropriate capitalization, the next stage of development may be the transfer of the company to the main floor of the Warsaw Stock Exchange. The Bonds Act of 29 June 1995 introduced for bond companies the ability to issue bonds which, when their issuer is a company, are called corporate bonds. Especially in recent years, it is an increasingly popular form of raising capital. This sector of the financial market was revived in 2009 by the Catalyst Market in Warsaw, where corporate and municipal bonds may be quoted. Corporate bonds may be prepared as part of a public offering prepared jointly with the Brokerage Office. The advantage of this solution is the lack of restrictions on reaching potential investors. Decisive minus is very high cost and long preparation time. In practice, this solution is mainly used by banks. Preparing a private offer limited to 99 defined investors is the most popular form of issuance. The more cost-effective and less time-consuming solution allows the issuer to respond quickly to emerging financial needs. An important advantage of the private offer is that in case of issue of bonds we do not control the Company. The actions remain in "our hands". See Virtual office. So you will reduce the cost of your company From the entrepreneur's point of view the biggest disadvantage is the cost of bond interest, which is the profit for the buyer of bonds from our company. Today, most bonds are based on quarterly or semi-annual interest payments, ranging between 8-15% per annum (lower interest on secured bonds and higher for unsecured bonds). This means that the entrepreneur must be prepared for their operation before receiving a return on the funds used. Mutual benefit - for the issuer and investor (bond buyer) - makes the market grow at a rate of over 40% per annum (Catalyst itself already has more than 200 series of bonds). Before choosing a financing solution that best fits your company profile and needs, it is important to clearly identify the direction of your business.
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