Raising Finance

Medium size companies have to looking for expand there businesses through investment. Such investment through family members and have come to the conclusion you need to find others. There are large numbers of ways that it is possible, depending on the riskiness and amount of return you can offer.

The main option is to float the company in the stock exchange. This allows large cash to take place. But not to pay back, this could be achieved through tender offer. Another more secure method is that of a stock exchange introduction where the shares pre purchased. Once listed on the stock exchange further cash could raise through right issue.

Bond also an option to raised finance. There are varies types of bond. If the company must choose which form of bond to use raised the finances? Bond holders have received a fixed rate of interest through the period and after a matured period the amount borrowed will be pay back.

Bank loans are another way to raise the finance, who doesn’t want to reduce the control of the owner.  This is a possibility of entering in to a spreading the risk of the between the investors to raise large amount of finance. This requires finance received paid back at a latter date.

The recent articles have looked at the current stock exchange and their collaboration most notably LSE and TSE worth of £4.2 billion and the NYSE and Deutsche Bourse worth £14.4 billion (Montreal, 2011). The recent financial time noted people are worried that deals. Are collaborations going to benefit medium size businesses if they decided to use stock exchange to float the company?

Just looking at the Premier League and the Spanish League it is interesting to see the amount of debt some football clubs have been saddled with. Manchester United in particular faces such high interest payments, from bank loans, that they account for a large proportion of profits leaving little if no money left for serious investment. Would their owners have been better off raising finance from elsewhere?