Public offering is a common way for many companies to raise capital. But – is it the best way to do so? Eitan Eldar says that this is the first question and the most important one – to offer or not.
According to Eitan Eldar, a company must consider the alternatives – like bank loans or loans from insurance companies. Another way is loans from companies that aren’t banks. There are companies that can raise capital through private offering – In this way, they can get the same amount of capital, but in a short time and low costs.
There is another alternative, as Eitan Eldar mentions: recruiting investors to the company who will provide it the capital it needs. After checking each one of the alternatives, it is used to learn the public offering on the market and the advanteges or disadvantages of this action.