Previously I talked about the methods for a company to raise capital. Will come at it from a different direction. If your a start up or an existing company working capital or credit facilities are your life blood. I believe the clear message has been Sanchez wants to take his company to the next level. How does he do that? Most companies don’t have the luxury of tens of millions of dollars just sitting on the books. Whether it be organic growth or growth by acquisition the need for capital is still there. The absolute first benchmark that he must reach is the raise of capital to fund the growth. Without it there is no reason to proceed and why would you. He probably spoke with his mentors (we have seen a few of them on social media) as well and asked them how do I take my company to the next level. (Speculation on my part) But wouldn’t they tell him the same thing? It takes money to make money. So he is 22 years in business, has track record of a successful business, good reputation, numerous successful funded projects, in the 4th largest city in the US, and rubs elbows with the movers & shakers in Houston. Think he may have opportunity for a credit facility? It’s my opinion the capital issue has long since been addressed. No way he goes thru this process if he was not successful in raising what he believes is an adequate initial amount. Otherwise this whole thing is an fools errand. Could he raise future capital by sale of stock? Yup sure could. But I think that’s down the line and not in the immediate future. Just me but I just don’t see why he would go thru all the expense and aggravation without capital being addressed long time ago. I could be wrong just my opinion.
