Equity financing for long-term care companies.
Going public is not for every long-term health care company. However, the equity marketplace provides an exciting, fascinating arena for soliciting capital which might otherwise prove too costly or difficult. The popularity of going public is evidenced by investor demand and the amount of capital raised can be phenomenal. In 1983 Russell (1985) noted that 889 companies raised $12.95 billion by going public. In 1984 equity raised dropped back to $3.5 billion. It is more true today than ever before that long-term health care companies possess an important financial weapon within their arsenal if they so choose to utilize it. By going public and raising equity financing the private entity can become a meaner, leaner long-term health care company. A company which now possesses greater leverage and bargaining power to create and to direct its own corporate destiny.
D002202:Capital Financing / Q000379:methods*; D005376:Financial Management / Q000379:methods*; D006801:Humans; D007449:Investments; D008134:Long-Term Care / Q000191:economics*; D009735:Nursing Homes / Q000191:economics*; D014481:United States