Growth Capital

Capital is a company’s most important strategic tool. It is a meaningful component of the long-term success of any business and must be carefully managed because of its impact on shareholder value. For small businesses, capital planning is critical because most entrepreneurs don’t have the same access to the capital markets as larger companies. That represents a significant disadvantage.

When small businesses require new capital, it is important that they utilize experienced capital raising assistance to ensure that they satisfy the need for capital with the best capital option.

  • Ideal For
    • Entrepreneurs and family owned businesses
    • Funding acquisitions
    • Funding expansion
      • Plant expansion
      • New equipment
      • New locations
    • Recapitalization
      • Shareholder buy-outs
      • Refinancing
      • Balance Sheet management
  • Measurable Benefits
    • Optimization of capital Structure
    • Decrease the overall cost of capital
    • Connections to funding sources unknown or unavailable in the past
    • On-call “Treasury Function”

One of the most important steps in raising capital is performing an objective analysis of the company’s historical and prospective financial condition in order to make informed decisions about how much and what type of capital best satisfies the capital requirement.

Examples / Characteristics

  • Revolvers / lines of credit
  • Term debt / notes
  • Letters of credit
  • LOWEST INTEREST RATE
  • Typically secured
  • Typically carry a personal guarantee

Purpose of Funds

  • Working Capital
  • Equipment / asset purchases
  • Facilities expansion
  • Inventory
  • Receivable management
  • Growth / acquisition

Examples / Characteristics

  • Subordinated or junior debt (banks may treat as equity)
  • Higher interest rate
  • Can include a “warrant kicker”
  • Unsecured or “last out” debt
  • Multi-faceted instrument

Purpose of Funds

  • Growth / acquisition
  • Recapitalizations
  • Management buyouts
  • Intergenerational transfers
  • Liquidity (partial or full)

Examples / Characteristics

  • Common stock
  • Preferred stock
  • Options
  • Last on capital structure
  • Might include interest
  • Might have multiple classes

Purpose of Funds

  • Aggressive expansion
  • Significant acquisitions
  • Incentive options
  • Liquidity (partial or full)
  • Change of ownership

Raising capital is a full time job. We believe it’s important for you to surround yourself with people you can trust and who’ve done this before. Please see our Client Successes to see how we’ve helped business owners just like you to achieve their goals they always knew their business was capable of.