What's Bridging Finance?

There's no lack of people and firms wanting to counsel and coordinate the going public process for CFOs.

The issue is that many of these equity finance experts are clumsy and / or devious.

Elude firms that don't divulge anything about themselves or their staff. Do a sophisticated search on the firm and its principals. Whatever solution the potential equity advisor recommends, you need to ask for a guess of costs, time to trading and the chances of being requested trading. You need to also figure out how the equity finance consultant expects to earn income helping your company go public. And your percentages of success are about even, that is, 50 / fifty.

IPO alternatives range in costs from $60,000 to many million bucks. When you understand what the term, "Bridging Finance" means, it's not difficult to know how it became its name. The tiniest delay can do damage to the transactions and create obstacles that a! re hard to overcome. Having to pay 2 mortgages, whether for home or commercial purposes, for any period of time can spell finance disaster. Go thru the bridge loan pre-approval process to see what proportion of a loan you qualify for. Most candidates will be asked to secure the loan with some type of important collateral. Examples of collateral include heavy machinery, business hardware, inventory, other commercial or home properties owned by or the candidate and even properties concerned in the buying process. Having a great credit score, for both your business and your personal life, and a solid relationship with a bank always helps when making an application for a bridging loan. This $12+ million investor relations cost will continue so long as the company is public and trading at $4 / share. The major drawback is the shell insiders often create shares for themselves and hide this fact from potential buyers. Therefore the purc! haser also inherits the future costs of finding the buyers for! those h idden shares. If your purpose in going public is to give your stockholders a "liquidity event," you will simply find equity finance specialists who share your myopic vision. If you're going public to build your company, you need to read my e-book Venture Capital Profits.