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Corporate Capital Formation
Once the market potential is identified, and a plan to satisfy the market's appetite is developed, adequate capital to develop, promote, produce and deliver the product or service must be formed. The planning and execution of capital formation is not the primary key to success. However, an inadequate capital formation plan or poor execution may decrease the enterprise's success potential or even sabotage' the ability of the enterprise to compete.
Objectives of capital formation should be clearly developed based on the intentions of ownership. Common "myths" about owning "publicly-traded" interests in a business as a pre-planned exit strategy should be avoided until there is intrinsic value in the enterprise. Real value will be attractive to a potential buyer or investor whether private or public.
The careful and creative development of a capital formation plan can be a major contribution to the enterprise by Corporate Resources Consulting Group, Inc. The process of attracting both equity and debt capital interests is dramatically enhanced if the prospect can be shown how their financial commitment "fits into the capital formation plan." The perception of risk in the mind of the risk-taker is reduced if the Company maintains a clear communication of its plans and the attendant prospective rewards to the risk-taker for its confidence placed in the growth in value of the enterprise.
CRCGI principals interview the ownership to determine the objectives of the enterprise, counsels ownership on the adequacy of the perceived financial resources required, either assists financial leadership or creates the capital formation plan and is available to participate in the actual recruitment of capital.
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