Debt and equity financing is used for many purposes, including: funding internal growth and/or acquisitions, transferring a family business to the next generation, or providing partial liquidity for shareholders. An appropriate balance of equity and debt allows business owners to take advantage of short-term opportunities, while maximizing long-term value.
Accessing capital in the private equity and debt markets can be a daunting task. Private capital markets today are fragmented, complex and constantly evolving. Management can be weighed down with a multitude of issues, including:
- Pre-money valuation
- Type of instrument or security (common stock vs. preferred stock vs. convertible preferred vs. subordinated debt with warrants)
- Covenants and restrictions ranging from required financial ratios to limitations on capital expenditures
- Evaluating and understanding the pros and cons of different proposals
As a Four Bridges client, you work with a team of professionals that have both capital markets and real world CFO experience – experience that is invaluable when structuring and negotiating a transaction. We work with your management to position the company properly and obtain financing on the best terms possible.
Equity Financing
Our close relationships with private equity groups across the country give us the ability to identify those funds that provide capital, as well as industry and general management expertise. We set realistic expectations early in the process, and identify and address issues that could impact the financing. That means you achieve the best overall transaction to meet your objectives and the ability to focus your energies on operating and growing the business.
Debt Financing
In the past, business owners chose a local or regional bank to provide both depository and commercial loan services. Consolidation in the banking industry, however, has reduced the number of traditional senior lenders and limited many borrowers’ ability to negotiate with these sources.
In addition to traditional banks and lenders, Four Bridges maintains relations with finance companies, subordinated debt funds, and hedge funds to help companies obtain favorable terms from a wide variety of lending sources.