Business-Minded Legal Solutions

Company equity sales: focus on private placement offerings

One of the largest constraints on growth for many businesses is liquidity.  Debt can be expensive or unavailable on commercially reasonable terms. And, lenders often prefer to work with a company that has substantial equity. In many instances, growth or expansion goals are the trigger for a need to raise capital.

We stress on our website at the tenured Houston commercial law firm of Stephenson Fournier that, “There are no substitutes for the benefits that knowledgeable legal counsel can provide with respect to raising capital.” Smart business owners turn to experienced advisors to aid with navigating the pathways of securities laws, commercial requirements and optimal structures from a tax perspective.

Our deep legal team collectively commands many decades of on-point and proven experience helping valued and diverse business clients (both domestic and international companies) successfully raise capital relevant to Texas-linked operations.

We note on our website that so-called “private placement offerings” are often attractive to growth-focused business principals as strategies to secure an infusion of capital. Our attorneys have for many years helped clients identify potential investment sources, design and implement optimal private offering structures, prepare necessary documents and agreements and conduct due diligence required to ensure a successful transaction.

A private placement offering of securities is of course not uniformly suitable in every capital-raising scenario. For select principals though, it can make ideal sense.

We will take a closer look at private placement offerings in our next blog post.