Raising Capital with a Private Placement in Germany

As a result of the setting of Basel II, the restructuring of the loan business and therefore the restrictive financing policy of the German banks, many companies aim to benefit from the advantages of raising equity capital with a private placement on the free capital market. The spectrum of equity participations within the bounds of a private placement is much wider and much more attracting than issuing securities on the stock market. The advantage of a private placement is the elimination of the cost of introduction to the stock exchange. It also means that funds can be raised relatively quickly, since, with private placement, apart from the production of a sales prospectus there is no requirement for any stock exchange pre-verification and admission procedures or in principle for compliance with any legal deadlines.

Besides the offering of voting shares, there exist many more financing instruments that enable private investors to provide equity capital in form of non-voting capital (equity substitute). Contractual agreements enable companies to restrict and control the investor’s influence according to the company philosophy. If the agreement is formulated in accordance with legal requirements, there are no partners or shareholders involved, but only private investors interested in dividends and a share in the profit. Thus the entrepreneur remains the sole owner of his company and therefore “master in his own house”.


Dr. Werner-Financing Experts for Corporate Finance and Raising Capital

Dr. Werner Business Finance KG
Dr. jur. Horst Siegfried Werner
Gerhard-Gerdes-Str. 5
D-37079 Göttingen

Private Capital for Financing for Companíes 
with Dr. Werner Business Finance KG since 30 years

Tel. +49 (0)551 / 99964-241
Fax +49 (0)551 / 99964-249
e-mail: dr.werner@finanzieren-ohne-bank.com
dr.werner@equity-capital.com