September 3, 2009
Capital Raising Services
You have to dream to build your own company, but you have to have the right capital raising services to make that dream possible. Capital drives growth and creates options. And you’ll need all the help you can to develop an effective financing strategy, determine the optimal deal structure and then secure the capital necessary to advance your strategic and financial objectives.
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When you gain knowledge on capital raising services you also increase your access to private capital for expansion, recapitalization / shareholder liquidity events, leveraged buyouts, acquisitions and debt refinancing through high quality institutional, financial and strategic investors. There are a variety of financing options that experts recommend in using that will suit your objectives.
One, there’s senior debt financing, a cost-effective option that allows owners to avoid diluting their equity (providing the company has asset and/or cash flow coverage to support the debt). It includes preparation and presentation of a comprehensive private placement memorandum, solicitation of lenders, and coordination with other professional advisors to complete the transaction cost effectively.
Two is mezzanine financing that can strengthen your debt capacity by providing additional capital beyond what a senior secured lender is willing to provide or your equity provider is willing to invest — with less strength to you. It can be raised for a variety of purposes, including acceleration of organic growth or expansion into new markets; enabling capital for an identified acquisition; partial liquidity events for estate planning purposes and restructuring debt mix to reduce reliance on senior debt.
Third is equity financing where you can raise money for your business transactions by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. It is also known as “share capital”.
Lastly, is second lien financing which is a form of subordinated debt that is a potentially powerful funding tool. It’s an attractive option for companies with limited access to the capital markets due to operational or financial issues concerning to a rotation, restructuring or change of ownership. Primary institutional sources of second lien financing include collateralized loan obligations, hedge funds, finance companies and insurance companies.
It’s more frequently used to rebuild a company’s finances and operations. Companies use these loans to refinance more expensive debt, pay down bank loans or add operating cash to the balance sheet. In addition to that, it can be a competitive alternative to traditional mezzanine financing since it is usually less expensive in terms of interest rate, less dilutive in terms of equity features and tends to feature less restrictive prepayment penalties.
There are varied ways in capital raising services and the one that fits your company profile is just waiting for you. Assess every option available and know what’s to your advantage. You can consult experts or credible people to help you out in this endeavor. With the right choices, it’s not impossible to get hold of that business success.
Click Here to Learn the Secrets of Raising Capital… Guaranteed!
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