Most companies raise capital periodically and therefore lack current knowledge of market conditions, new instruments and current costs. Capital raising my require:
- Determination of the capital requirement and type of capital required
- Preparation of investor pitches and presentations
- Negotiation of definitive agreements
- Arrangement of senior debt
- Arrangement of mezzanine debt
- Arrangement of equity and venture capital] do we have to!
The cost of capital is never as important as the availability of the funding. Cash on hand allows for a company to pursue a strategy without concern for current economic conditions, execute unplanned events and demonstrate greater confidence toward stakeholders.