Archive: August 2007

Private placement – Another quality source of capital for your business. Private placement financing is another unique method for a business to obtain capital, and provide cash infusions at the same time to be used to increase sales, or to cover the cost of new equipment or software. As with other sources of financing, private placement has to be done properly to ensure your business get the most benefit possible. Private placement is a perfect source of financing for companies which are growing. Private […]

Leveraged buy out (LBO) financing is typically for: Management buyouts Acquisitions Divestitures Valuations Refinancings Strategic purchase of other product lines, divisions, or companies. Be prepared to: Raise and negotiate terms of senior, subordinated, and equity financing Organize business plans Hire needed management personnel where applicable Structure new employee benefit plans Negotiate long-term supply and use agreements Take note: Equity-based methods of financing […]

Private investment in public entity – Also known as PIPE investments Private investment in public entity financing takes a big stake in publicly traded companies whose valuations have dropped since going public, and now are seeking new sources of cash infusion to use for business capital. Angel investors or internal sources will typically be available to fund start-up companies, but venture capitalists want deals with more of a history behind them because they are investing more. They will […]

Mezzanine financing – Bridging financial gaps Mezzanine financing gives a business access to capital when a bank won’t finance them initially. It is an excellent method for a new, but profitable company to gain capital, while getting their financials in better order so they can receive a more standard bank loan. It generally includes subordinated convertible debt and yield based preferred shares, often structured with warrants or options. Basically mezzanine financing is a combination […]

Investment banks have funding types and access to sources Investment banks and brokerage firms provide funding for: Established companies with good revenue and excellent growth potential Initial public offerings, mergers and acquisitions, private placements Leveraged buyouts, management buyouts, bridge loans, debt offerings "The first company we selected is extraordinary. They will receive $7-$8 million dollars." Wilson Allen – Wind River […]

Merger and acquisition financing requires you work closely with: Private equity investors Investment bankers Commercial Lenders All of whom help produce the results that will lead you through the maze of corporate funding alternatives. In order to finance the assets and cash flow of the merger or acquisition at a competitive rate, you will need to properly structure the transaction by using leveraged financing. Merger and acquisition financing alternatives, include: Revolving lines […]

Turnaround financing can improve a dying business. Turnaround financing is for companies that have had a history of bad performance. It involves the challenge of improving a business by investing more money, or capital into the dying business. Often times the company is bankrupt or simply not performing. Turnaround financing includes the capital invested into the stagnant business. This capital could include financial capital or human capital. Often times a group of investors or other private parties […]