why do companies go for private placements 
there are many benefits that would make a company choose a private placement these include a faster process to selling shares than an ipo having to meet fewer regulatory requirements than an ipo would require having to meet fewer regulatory obligations on an ongoing basis than being public would require and the ability to retain more control of the company the bottom lineprivate placements allow business owners to raise capital by foregoing the ipo process which is often long difficult and burdensome by opening their doors to pre selected investors through private placements businesses can raise funds for expansion while not having to abide by the many regulatory requirements that an ipo and being public demand though it comes with benefits there are downsides with demanding investors seeking high returns for the increased risk they take on through private placements 