Lessons: Issues And Practical Considerations In Equity Financing In Nigeria

Introduction

Profit making is the primary goal of business, howsoever organised – whether a partnership, private or public (listed or unlisted) company, and this is duly recognised by law. One universally acknowledged way of increasing the prospects and quantum of profit is through growth and expansion. It is difficult (but not impossible) to increase profit without achieving growth. Often times (and all things being equal), size translates to profits because of bigger scale, larger market share, etc. This is why companies prioritise the pursuit of growth. A company can choose to grow internally and organically, or externally (by acquisitions). These two options present unique challenges and limitations. However, one common denominator to both options is the need for capital.