Corporate Finance

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Businesses obtain financing through a variety of means, ranging from equity investments to credit arrangements. A firm might take out a loan from a bank or arrange for a line of credit. Acquiring and managing debt properly can help a company expand and become more profitable.

Startups may receive capital from angel investors or venture capitalists in exchange for a percentage of ownership. If a company thrives and goes public, it will issue shares on a stock exchange; such initial public offerings (IPO) bring a great influx of cash into a firm. Established companies may sell additional shares or issue corporate bonds to raise money. Businesses may purchase dividend-paying stocks, blue-chip bonds, or interest-bearing bank certificates of deposits (CD); they may also buy other companies in an effort to boost revenue.

Recent examples of corporate financing include:

Bausch & Lomb Corp’s initial public offering was initially filed on 1/13/2022 and officially sold shares in May 2022. The healthcare company generated $630 million of proceeds.

Ford Motor Credit Company LLC managing outstanding notes to raise capital or extinguish debt to support Ford Motor Company.

HomeLight’s blended financial approach of raising $115 million ($60 million by issuing additional equity and $55 million through debt financing). HomeLight used the additional capital to acquire lending start-up Accept.inc.

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