When you start a business, capital needs can be substantial. Partners or members may join together and pool their resources, but that may not be enough. Banks and other funding sources may be uncertain when providing the necessary backing to a new endeavor.
Is Private Placement The Solution?
When you need more capital than your partners can assemble, but are not in a position to create a public offering, or for business purposes wish to avoid the reporting demands of state and federal securities laws, a private placement may serve your purposes.
With a private placement, there is no public sale of securities. The company, or issuer, sells to a limited number of investors in a Regulation D or Regulation A type offering, or another exempt offering. While there are regulatory requirements to follow, these offerings are less expensive and complicated than “going public.”
These sales are typically restricted to very sophisticated (accredited) investors, including financial institutions or select individuals with high net incomes and/or wealth or to a limited number of other investors. James Law Firm, P.L.L.C., understands the sensitive nature of these transactions and provides experienced counsel for parties interested in executing private placements.
Help Funding Medical And Other Businesses
James Law Firm, P.L.L.C., has helped medical businesses with private placements involving real estate and specialized medical clinics such as Durable Medical Equipment (DME) Centers, sleep centers, MRI clinics and medical laboratories. These can be very complex financial transactions, and our attorney’s strong background in business, accounting, and tax law allows us to handle successfully all of the elements of these offerings.
This process can help you access venture capital or find “angel investors” as you work to raise capital for your new business. Our lawyer can draft the agreements and private placement memoranda (PPM) necessary for your transaction.
Contact Us For Advice On Your Starting A New Venture In Texas
Executing a private placement is complex that involves financial, securities, business and tax law issues. Our lawyer can advise you during the process and help your transaction reach achieve a successful outcome. To discuss with our attorney, contact our office in The Woodlands at 832-764-7885 or use our online form.