How Equity Management Platforms Help You Grow Your Business

Equity is the portion of your business that represents the ownership stake held by each shareholder. Equity management refers to the process of handling equity instruments and managing portfolios. It includes crucial activities such as equity research and risk management.

It's important to have a clear and concise equity management platform in place so everyone is on the same page, knows what they own, and can see how their equity stake changes over time. Take a closer look at how you can leverage an equity management platform to help you grow your business.

Helps You Track and Access Key Data

An equity management platform gives you a 360-degree view of your business, which is critical for making sound decisions about where to allocate resources. The platform should provide an overview of the company's equity situation, including the number of shares outstanding, employee equity compensation, and shareholder equity.

It should also be easy to track changes in equity over time. This data is important for understanding how equity dilution will impact future financing rounds and forecasting cash needs.

Additionally, an equity management platform can help you keep track of key dates related to equity compensation, such as vesting schedules and cliff vesting dates. This information is essential for managing your equity compensation program and ensuring that employees are properly incentivized.

The platform should also provide a way to manage equity-related documents, such as shareholder agreements and option plans. This will help you keep track of critical equity information in one place and ensure that all shareholders have access to the latest versions of these documents.

Helps You Stay Compliant with Regulatory Requirements

An equity management platform can also help you comply with various regulatory requirements. For example, the platform can help you track insiders' equity holdings and report on ownership changes. This information is important for meeting disclosure requirements and avoiding insider trading violations.

Additionally, the platform can help you manage share repurchases and other transactions that impact equity. This includes keeping track of the number of shares outstanding, calculating dilution, and issuing stock certificates.

These features are important for ensuring that your equity transactions are conducted in compliance with SEC regulations. You want to avoid any potential problems that could arise from incorrectly calculating dilution or failing to issue stock certificates.

Helps You Raise Capital

An equity management platform can also be a valuable tool when it comes to raising capital. The platform can help you track your equity situation and make projections about future financing rounds. This information is critical for pitching to investors and negotiating equity deals.

Additionally, the platform can help you manage your equity dilution and ensure you don't over-dilute your ownership stake. This is important for maintaining control of the company and ensuring that existing shareholders are properly incentivized. 

For more information about equity management, contact a local company.