Capital Raising in Toronto
Morrison Park Advisors helps our clients prepare for and execute equity capital raising or placement transactions. We approach the client’s needs with a bottom-up approach which entails a detailed assessment, evaluation, and valuation of the company or asset.
Access to capital is critical for an acquisition or to give your liquidity cushion. We offer a broad spectrum to our clients which include both public and private corporate issuers as well as Financial Sponsors and Pensions in Canada.
What Is Capital Raise
Capital raise, in basic terms, is the process of raising capital by a company or other entity. Unless one is saving money, the only other way to earn quick income would be through debt or equity.
Through capital raise, companies can experience a short-term boost in their finances which can be used for any number of uses within the company. This capital will have to be paid back with interest to investors who bought the securities.
How To Raise Capital
As stated above, raising capital comes in the form of debt, equity, or a hybrid of the two. When companies need to raise capital, they will typically offer attractive securities to investors to convince them to invest. Companies can employ those new resources to invest in the company and provide a strong return for investors.
When You Should Consider Capital Raise
It can be difficult to know when to consider capital raise, given its dual nature. On the one hand, it can provide much needed financial freedom over the short-term. However, the company will lose control over the long-term due to debt or equity. As a result, the following scenarios are general clues for considering capital raise:
- Your company identifies a promising growth opportunity
- Your capital structure is not optimal
- The company is experiencing trouble/uncertainty
- The company is young and not yet profitable
Of course, there is a great deal of complexity in these situations that can’t be expressed here. However, if your company is experiencing financial problems, capital raise may be a key to solving the issue.
How Equity Capital Raising Helps
Equity capital raising uses the company’s equity itself as leverage for investments. Equity is generally more attractive to investors than debt but can reduce the cut of the profits and cause decision power to diffuse as securities are sold.
Depending on your specific situation, equity capital raising may be the ideal next step for your company. Our advisors can provide a detailed analysis of your business and determining if equity capital raising makes sense for you.
Why Choose Us
Morrison Park Advisors staffs a highly-experienced team of financial professionals. We aid companies in various industries to create securities that garner attention and funding from clients. Our track record of successful capital raising in Canadian and international markets drives our desire for ever-better outcomes for clients. The diversity of our knowledge base, coupled with key partnerships, allows us access to all the financial tools our clients depend on.
We’re Here To Help Our Clients
Do you think your company needs to raise capital? Our experts are ready and waiting to work with you. Contact our office today to speak with a member of our team and begin elevating your business!