Companies typically seek equity financing to fund growth, make acquisitions, sponsor management and leveraged buyouts, execute an industry consolidation, complete a turnaround or restructuring, or to “cash out” existing shareholders. Equity can be sourced from either the public or private markets.
In the early stages of a company’s life cycle, equity is generally raised in the private markets, through angel investors or institutional investors such as venture capital or private equity funds. Private equity offers many advantages such as access to liquidity, growth capital, and experienced financial and strategic partners.
Once a company reaches a certain size or maturity, public equity can be raised through a going public transaction called an initial public offering, or “IPO.” Companies that have already completed an IPO can raise additional equity either through a secondary offering or a PIPE (Private Investment in Public Equity). A PIPE is especially attractive to companies who desire to raise public equity quickly and confidentially at a much lower issuance cost.
How Atlantic American Can Help
Atlantic American can assist your company in raising capital through the various equity channels. Raising private equity is a very involved process, but having the right partner can help alleviate many of the expected difficulties and unexpected pitfalls. In addition, Atlantic American maintains a large network of private equity sponsors and public equity underwriters. Having relationships with these parties significantly increases the likelihood of getting the transaction funded in a timely and beneficial manner.