Debt/Equity Strategy

Most successful CEOs are excellent at running their business, but more likely than not, they lack the experience in the capital markets.  While we often think of the “markets” just for publicly traded companies, there actually is a “market” for debt and equity and thousands of participants in the market are willing to provide some type of financing.

But what is right for your company with your circumstances?

Is senior debt a possibility, or must you raise equity to grow?  Is real estate involved?  If so, then another whole set of alternatives exist.

We worked with a company recently that thought they would need to sell about 30% of the company to continue to grow.  After our analysis, we became convinced that the company had internal cash flow sufficient to execute a well thought out and incremental growth plan.  Result?  Company has now grown as much as it might have with the $3 million equity infusion, but the CEO owner still owns 100%.  We were able to attract the right debt instrument, and today his business is thriving and is not close to be over leveraged.

We work with our clients to determine which options are possible, and then to model and discuss with the client all the alternatives.  Once we decide on a best course of action, we assist the company in going to the market to attempt to find the appropriate debt and/or equity partner.