Why Now may be a Great Time to Offer Shares in Your Company

With the broad market as measured by the S&P 500 hovering near record highs and the housing market continuing to bounce back from the depths of the last recession, the time to raise capital may be at hand for several reasons including:

*Many investors are looking for alte
ate investments – Having seen the lows in the housing market and reluctant to chase stocks near their highs, investors are looking for new opportunities including investments in privately held companies. Another factor in this equation is that one of the most popular alte
ate investments, gold, has weakened considerably.

*Increased investor liquidity – With moves to take profits in the market and a re-allocation away from precious metals, investors are sitting on proceeds from asset sales. With interest rates at record lows, keeping cash on the sidelines is basically yielding nothing when inflation is factored in to the total return.

*The window is open, but maybe not for long – With the recovery in the broad indices approaching the 4 year mark, the long run is probably closer to its end than its beginning. The investor confidence and liquidity that characterize today’s environment will change rapidly once markets go into a corrective phase. While it appears that the Fed will continue with its easing policies for the time being, the actions that have buoyed the markets can’t go on indefinitely. Even a hint by the Fed that the current policy could change will likely be a force that persuades investors that the easy money is behind them.

The current environment for raising capital is favorable for private companies now. However, this situation can change quickly, meaning that moves to raise funds should be taken sooner rather than later.