As a private placement broker dealer, LGA Capital represents companies all across the country, small and large, in growing their businesses and pursuing investment opportunities. Each private placement includes a detailed analysis of the issuer and the investment, identification of prospective investors, and ultimately, timely execution of the transaction (closing).
Companies all across the United States, small and large, are continually raising capital to grow their current businesses in order to capitalize on new opportunities. This is where LGA Capital adds value. By understanding our clients and their proposed investment, and by embracing the obligations incumbent upon a broker dealer, LGA is better able to identify and communicate with suitable investors to raise capital.
Under the Securities Act of 1933, any offer to sell securities must either be registered with the Securities and Exchange Commission (SEC) or meet an enumerated exemption. Regulation D, under which LGA Capital offers securities, contains a number of limited exemptions from the registration requirements. This is a common tool used by companies of all sizes and in all industries to raise capital. The sale of these securities is known as a Private Placement. In such cases, unless there is an enumerated exemption, a company (issuer) seeking to raise capital is required by the Securities Act to use an intermediary, such as a broker, to solicit investors. This requirement stems from an effort to sell securities to investors, for whom such an investment is suitable, in a fair and objective manner.
Prospective investors need to make informed decisions, understanding not only the potential rewards, but also the risks inherent in investing. The spirit and letter of the Securities Act is fulfilled when investors enter the private placement market and make informed decisions based on a fair, balanced and objective presentation of any investment opportunity.
LGA Capital endeavors to raise capital for its clients through application of its central focus on objective, critical and detailed analysis of any opportunity.
Representing the Issuer Raising Capital
LGA Capital provides the following Private Placement services to its clients seeking to raise debt and equity capital:
- Advise client companies on available securities offerings and other capital raising activities
- How much capital does the company need?
- What are the alternative methods for raising the necessary capital?
- What is the appropriate mix of debt and equity?
- Make appropriate recommendations consistent with the proposed use of capital and the issuer’s long and short term objectives
- Assist in the preparation of offering materials on behalf of the issuer
- Qualify, identify and solicit potential investors
- Develop analyses and reports with respect to issuers, industries, securities, economic factors and trends, portfolio strategy, and performance of accounts
- Prepare financial analyses (or review those prepared by the issuer) to evaluate the viability and suitability of the proposed use of capital
- Assist the client with the execution of the sale of the security
In reviewing any proposed investment opportunity, LGA works with its clients to raise capital in an appropriate and responsible manner. Sometimes, the analysis leads to an alternative and more palatable method for raising capital. And other times, LGA has to tell a client that its proposed investment isn’t viable and that it should reconsider its efforts to proceed.
In all capital raise efforts, LGA endeavors to match the right company with the right (suitable and informed) investor. If through our objective and critical analysis, LGA determines that a business opportunity is viable, we will be more successful in attracting potential investors. If through our analysis, however, we determine that a transaction does not appear viable we will inform the issuer and we will not market the transaction.
Working for Potential Investors
In order to raise capital while protecting the interests of prospective investors, LGA Capital:
- Provides a fair and balanced analysis of any investment opportunity
- Evaluates the investment to determine that it is what it claims to be
- Evaluates the background of key principals in the company seeking to raise capital
- Educates prospective investors by disclosing to them risks associated with the specific investment, as well as the risk of loss inherent in any securities transaction
- Determines whether the investment is suitable for prospective investors, including but not limited to review of accredited status
- Answers questions posed by prospective investors
- Provides prospective investors with access to information and due diligence necessary to make an informed decision
- Protects the privacy of information provided by prospective investors
- Does NOT compensate promoters, finders, or lead generators for providing LGA Capital with the personal identifying information of any potential investor
- DOES NOT GUARANTEE RETURNS TO POTENTIAL INVESTORS