Dilution not only impacts control and decision-making power but also potentially lowers the per-shar
5. Access to Strategic Resources
Equity investors, particularly institutional and strategic ones, often bring industry expertise, operational guidance, and valuable networks, which contribute to long-term growth and stability.
Negative Impacts
1. Ownership Dilution
Issuing new shares reduces the ownership stakes of existing shareholders. Dilution not only impacts control and decision-making power but also potentially lowers the per-share value of the company.