SERMAYE ARTIRIMI. ŞİRKETLERİN BÜYÜME VE GENİŞLEME STRATEJİSİ

CAPITAL INCREASE: GROWTH AND EXPANSION STRATEGY OF COMPANIES

Key Takeaways

• Capital raising can help companies strengthen their financial structures.
• Capital raising can enable companies to gain a competitive advantage by increasing market share and growth potential.
• You will have information about the types of paid and unpaid capital increases and the decision process.
• You will learn about legal regulations and internal company procedures regarding capital increase.
• You will understand the effects of capital increase on company performance.

What is Capital Increase and Why is it Important for Companies?

In this section, detailed information will be given about what capital increase is and why it is important for companies. Capital increase is the key to strengthening a company's financial structure.

• The Key to Strengthening the Financial Structure

Capital increase is an effective strategy used to strengthen the financial structures of companies and create a more solid foundation. This strategy allows companies to raise funds from external sources through capital raising rather than costly borrowing. Thus, financial risk is reduced and companies can pursue a more sustainable growth process.

• Increasing Market Share and Growth Potential

Capital raising is an effective way to increase companies' market share and growth potential. New capital can help companies develop new products or services, increase marketing activities, and seize growth opportunities. Additionally, the resources obtained through capital increase allow companies to gain a competitive advantage and expand their market share.

• Effective Use of External and Internal Resources

Capital increase ensures the effective use of external and internal resources for companies. External resources refer to capital provided from investors or financial institutions. These resources play an important role in achieving companies' growth goals. Internal resources are resources obtained from the company's own assets. Capital raising is a way to benefit from both external and internal resources, enabling companies to use both resources effectively to increase growth potential.

Overview of Company Growth Strategies

Growth strategies of companies are strategic plans that aim to grow and increase their competitiveness. Companies take various strategic steps to achieve their growth goals. In this section, factors such as what is done in the process of determining the growth targets of companies, the importance of doing market research, innovation and competitiveness will be discussed.

Market research is an important step when determining companies' growth targets. Market research is a process to analyze the needs, demands and trends of the target market. In this way, companies can determine their strategies to meet customer expectations, gain competitive advantage and reach the targeted growth potential.

Innovation plays an important role in companies' growth strategies. Innovation can be defined as developing new products and services, making improvements in business processes and improving customer experience. Innovation supports companies in achieving their growth goals by providing them with a competitive advantage.

Competitiveness is a fundamental element of companies' growth strategies. Competitiveness is the ability of companies to compete with other competitors in the market. Competitiveness is based on many factors such as cost advantage, product and service quality, customer relations and brand value. Competitiveness is an effective strategy to enable companies to achieve their growth goals.

Companies can use these strategies together to achieve their growth targets, or they can rank the strategies by determining their priorities. These strategies help companies increase their growth potential, expand market share and expand into new markets.

Capital Increase Types and Decision Process

Types of capital raising play an important role in supporting a company's growth and expansion strategies. Capital increase is a financial decision process used to strengthen the financial structure of the company and increase its resources.

Advantages of Paid-in Capital Increase

Paid-in capital increase is a method in which shareholders have the right to purchase new shares at a certain price. The capital thus obtained can be used to finance the company's growth and expansion projects. The advantages of paid-in capital increase are as follows:

• Providing new capital: Paid capital increase is an effective method to raise the capital the company needs.
• Shareholders' protection of their existing shares: In a paid capital increase, shareholders can protect their existing shares by purchasing new shares.
• Increasing company value: New capital obtained through paid-in capital increase can help the company increase its value and increase its growth potential.

Free Capital Increase and Internal Resource Management

Free capital increase is a method that involves distributing new shares to shareholders free of charge at a certain rate. In this way, capital increase is achieved by using the company's resources. The effects of bonus capital increase on internal resource management are as follows:

• Increasing access to shares: Free capital increase allows shareholders to grow the company and share its profits.
• Rewarding existing shareholders: In a free capital increase, existing shareholders are rewarded by receiving shares free of charge.
• Effective use of in-company resources: Free capital increase ensures the effective and efficient use of the resources provided by the company for growth.

Legal Regulations and Details of Capital Increase

You understand that raising capital is an important step for a company. However, the legal regulations and subtleties that must be taken into consideration during the capital increase process are also very important. In this section, you will find detailed information about the legal regulations and responsibilities regarding capital increase.

First of all, there are regulations determined by the Capital Markets Board (CMB) regarding capital increases. CMB regulations determine the rules and procedures that companies must comply with during the capital increase process.

Companies must also follow their internal procedures to increase capital. These procedures include rules and processes determined according to the internal structure of the company.

It is also important to make accurate and inaccurate reporting during the capital increase process. Companies are required to regularly report accurate and accurate information regarding capital increases.

It is important to manage the capital increase process correctly and properly by complying with all these legal regulations and subtleties. This is of great importance for the company's financial structure and growth strategies.

Effects of Capital Increase on Company Performance

Capital increase is an important factor affecting company performance. When structured correctly, it can strengthen the company's financial structure and operational capabilities. In this section, we will examine in more detail how capital increases affect company performance.

• Balance Sheet Indicators and Their Effect on Liquidity

Capital increase can improve the company's balance sheet indicators and financial soundness. Businesses can increase debt payment capacity and financial flexibility by increasing the company's equity capital through capital increase. This strengthens the company's liquidity and increases its ability to maintain its operational activities. At the same time, the capital increase is also important in terms of risk management by improving the debt structure of the company.

• Role in Risk Management and Ensuring Financial Stability

Capital increase has an important role in risk management and ensuring financial stability. Companies can diversify their resources and distribute risks by increasing capital. This makes the company more resilient during times of crisis and maintains operational efficiency. At the same time, the capital increase supports the company's growth strategies and provides the necessary financial resources for new opportunities.

How to Increase Capital?

Capital increase is a financial transaction implemented by the company to increase its existing capital. This Strategy requires raising capital through stocks. Companies give priority to existing shareholders and issue new shares. The capital increase is based on the company's situation and market conditions, and the value of the shares is determined. In a free capital increase, shares are distributed to existing partners.

It is important for companies to be lawful and fair. Capital increase calculation is based on existing capital, funds to be obtained, value and number of shares.

Capital increase can be applied to joint stock companies and limited companies.

•   Capital Increase in Joint Stock Companies

Capital increase in joint stock companies is the process of increasing the amount of capital in accordance with the company's economic growth strategies, especially in line with its growth targets or for the purpose of investing in new projects. This is usually accomplished by obtaining additional contributions from the company's existing partners or by securing additional financing from outside investors. When raising capital, it is important to act in accordance with the needs of the company and at the same time meet all legal requirements. For this purpose, it is necessary to carefully comply with the relevant regulations of the Turkish Commercial Code and the Capital Markets Board. During the transaction process, the general assembly decision is taken, the capital increase process is completed and the process is completed by submitting all relevant documents to the official authorities. This process is an important step for the future success of the company and needs to be managed carefully.

•   Capital Increase in Limited Companies

Capital increase in limited companies is an important transaction that can be carried out for a number of different reasons. These reasons include increasing the amount of available capital in order to expand the company's operations, make new and exciting investments, or increase its overall financial strength and stability. Capital raising transactions generally require collecting a number of documents and following a set of procedures. These documents and procedures are often quite complex and need to be carefully managed. The documents include a special petition signed with the company stamp, a notarized copy of the general assembly resolution, the amendment text of the company contract and capital payment documents committed in cash. Other required documents include documents such as CPA or CPA report and activity certificate. In case of capital increase from internal sources, relevant reports and documents must be submitted. If the capital is increased by adding in-kind capital, valuation reports, registry records and documents regarding the payments made to the Competition Authority must be submitted.

 In conclusion;

Capital raising is an important strategy for businesses and plays an important role in company growth and expansion strategies. Capital increase is an effective financial tool for businesses to achieve their growth goals. By strengthening their financial structures, companies can increase their market shares, increase their growth potential and use their external and internal resources effectively.

Capital increase provides companies with the opportunity to make new investments and access growth opportunities. Thanks to capital increase, businesses can expand their financial resources and increase their ability to realize their projects. Additionally, companies can meet their liquidity needs and gain a stronger position in risk management by increasing capital.

To summarize, capital increase is of great importance for businesses. Companies should use capital increase effectively to implement their growth and expansion strategies. While this financial tool supports businesses in achieving their goals, it also strengthens their financial structures and provides a competitive advantage.

 With You During the Capital Increase Process: Fast and Safe Transactions with Ifasturk

Now you know what capital raising is, why it is important, and how to do it. However, this process can be complex and difficult. We have good news; Ifasturk is here for you! Ifasturk, as a platform born from the combination of technology and financial services, is by your side during the capital increase process. Whether you are a joint stock company or a limited company, Ifasturk's experienced team will help you to make your capital increase process easy and trouble-free. With the services offered by Ifasturk, you can carry out your capital increase transactions safely and quickly. Choose Ifasturk for the growth and expansion of your business and secure your future.

Mesut SENEL | Ifasturk CEO

Independent Accountant Financial Advisor