Financing Window for Middle Market Private Companies

GettingMoneyThe window is open for smaller middle market private companies to obtain capital from private equity funds.  The former cutoff of $5 million EBITDA to get interest from private equity firms seems no longer in place.  Smaller firms with less than $5 million of EBITDA are attracting interest.

If your smaller middle market company would benefit from additional equity capital, now may be the time.

Click here to go to my article on the new site, Growth Capital.
 By Dennis McCarthy
  Google

JOBS Act Progress on General Solicitation

Dennis McCarthy – (213) 222-8260 – dennis@monarchbayassociates.com

Well, I’m calling it progress.

The SEC has submitted for comment some revised rules under the recently enacted JOBS Act.

The proposed rules would permit offerings of securities which are exempt from registration, commonly known as private placements,  to be marketed more widely than is currently possible.

The current rules limit the number of potential investors that can receive the offer.  Under the proposed rules, those limits are removed.

What remains generally the same are the rules defining who can invest.  They must meet tests to qualify as accredited investors.

That’s why I call it progress as long as something like the proposed rule gets adopted.

Today, companies and their agents raising capital have the technology to reach out to just about every potential investor on the planet, so why not?

At the same time, restricting investors to those who are accredited maintains some protection for unsuitable investors.

There’s more progress needed but this is a step.  The SEC press release is available at the link below.

As always, please contact me to help your company raise equity or debt or complete M&A deals.

SEC Press Release: http://www.sec.gov/news/press/2012/2012-170.htm