Raising Capital and Adding Liquidity Others Can't: A DEEPER Dive: Creative Ways To Finance A Business Acquisition
This Week On How2Exit, Chatting With an Expert on rising Capital - DEEPER - Creative Ways To Finance A Business Acquisition
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Richard Luftig is the co-founder and managing partner of Castle Placement. He grew up in the suburbs of New York City and went to college before working in a boutique investment bank for seven years. In 1990, his friend from high school suggested law school, and Luftig decided to pursue it. After law school, he worked at bulge bracket investment banks, such as Credit Suisse and Bear Stearns, mainly in the capital markets and raising capital spaces. His partner at Credit Suisse was Ken Margolis, who left in 2000 and Luftig left to go to Bear Stearns.
Richard Luftig and his partner Ken founded Castle Placement in 2008 during the global financial crisis. Castle Placement is an investment bank that focuses on raising private equity and debt capital for their clients. The firm is FINRA-licensed and registered with the SEC. They have built their business around data and technology, creating a seamless process that is more efficient for raising capital.
Richard Luftig discussed how the current uncertain times have affected their business model. They specialize in transactions that are off the beaten path, such as those that are contrarian or involve early-stage companies. He noted that during financial crises, their investors are attracted to the higher risk-adjusted expected return. He believes that the current financial crisis presents an opportunity for them.
Ronald Skelton asked how technology and other changes have impacted the financing industry. Richard believes that the Small Business Administration's move to partially acquire loans has had a positive impact, and he believes that technology will continue to change the way money is raised in the future.
Richard Luftig is the Co-Founder of Castle Placement, a platform that helps companies raise capital. They built their platform based on data and technology, utilizing the internet instead of traditional investment strategies such as those done in the boardroom or at the country club. Around 2012, the government enacted the Jobs Act, which allowed companies to use the internet to raise capital. Luftig and his partner, were well-prepared, so they were able to recognize the potential of the Jobs Act and were able to implement their services right away. Over the 14 years since the company was founded, they have gathered very granular investment criteria about every investor on their platform.
Ronald and Richard talked about Castle Placement’s new license that allow it to trade secondaries and how this is so impactful to companies looking to raise capital as now the investors know what was once fairly illiquid can now be sold if needed.
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This week’s “DEEPER” Dive: Creative ways to finance a business acquisition
This article aims to delve deep into the realm of non-traditional financing, spotlighting options like crowdfunding and partnerships, among others. These innovative strategies have gained popularity and proved invaluable in numerous successful business acquisitions. As we demystify these alternatives, the aim is to empower potential business buyers with a broader understanding and practical knowledge to leverage these tools effectively.
Let’s dive in.
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