The key to a business' success is delivering the optimal solution to the new challenges the company faces, and the best solutions demand expert advice. At Link Resource Partners, we bring valuable resources and corporate finance expertise to the table in order to create and deploy the best solution to your company's specific challenges. Below is a list of common questions asked by our clients.

• Where does the money come from?


• Do you provide references?


• People keep talking about an exit strategy - can you help with that?


• I've known my bank for years, Why would I hire you and incur fees?


• What are your typical fees?


• How long does it typically take to get funded?


• Do you work on an exclusive basis?


• Obviously exclusivity is good for you, but why would I want to obligate myself like that?


• You say you act as advocates, what do you mean?


• Does investment banking mean taking a company public?


• You keep referring to cost of capital. What is it?


• I do not have debt and I do not pay dividends. Isn't my cost of capital zero?


Where does the money come from? 

We help companies arrange financing with a wide assortment of lenders and equity investors including Schedule 'A' banks, Asset Base lenders, leasing companies, private investors, and instructional private equity just to name a few. Our mandate ranges from providing institutional senior debt to helping companies arrange an equity investment.

Our exclusive fund, Bridge Capital Corporation, provides Link Resource Partners with an advantage over other corporate finance groups. BBC is used tactically to support our financing projects. For example, if you required $5 million in capital, and the optimal senior debt bank financing provided $4 million, BCC could offer the $1million balance. This ability ensures that Link Resource Partners delivers a complete solution to the client and illustrates the type of true value-added service that Link Resource Partners brings to the table.







Do you provide references?

For the most part, we can cite client references within your specific industry. As our clients are predominately private companies, they are not listed here. After an initial consultation, we can provide references that will ease any of your concerns.







People keep talking about an exit strategy - can you help with that?

Absolutely! It is important that we understand your short-term and long-term goals in order to implement a strategy that addresses a later exit. Whether as a result of succession planning, a management buyout, partnership disputes, an equity investment, or simply the desire to take some money off the table for personal estate reasons, you need strategic advice coupled with the ability to deliver tactical solutions that can achieve your goals. We can help you choose the right direction and execute your plan by arranging the right financing, preparing your balance sheet, and implementing a series of other specific long-term strategies that build and maximize the value of your company leading up to a change in ownership.







I've known my bank for years, Why would I hire you and incur fees?

You would only hire us if our value proposition exceeds the fees incurred. Typically, we provide our clients with better rates, terms and conditions than what they can achieve themselves. This is due to five main reasons:

1) We successfully complete dozens of deals every year and, as such, are able to leverage our relationships with our lenders.

2) Our involvement creates a competitive environment that ultimately lowers cost of borrowing.

3) With our extensive and current market knowledge, we know exactly where to push the envelope. That does not mean simply on rate either! There are numerous terms and conditions that can be negotiated in every deal, all of which can have a material effect on your business. It is our belief that you want experience on your side through the negotiation process.

4) We have the time and resources. It is difficult for you to be as efficient at a corporate finance process as we can because for you it is an occasional activity, whereas for us it is our livelihood. Hiring us is just another form of specialized delegation that allows you to focus on your core competencies of the business.

5) We deliver successful strategies. Your bank only provides a limited range of financial products. They do not have access to the extensive range of financial products that we do and they are unable to help you with a broader strategy. We often use this broader approach to corporate finance tactically to maximize the terms and conditions you are able to get with the bank.







What are your typical fees?

Fees are charged predominately on a success basis. However, as a professional services discipline, we require a retainer. The rates vary with the type, size, and scope of the project and in keeping inline with the market.







How long does it typically take to get funded?

Depending on the source of financing, funding timelines will vary with the size of the deal and the type of lender. While we always work as efficiently as possible, funding within 30 to 90 days is usual and two week funding is not unheard of. Client readiness (availability of information, financial or otherwise) and the client’s ability to respond and allocate time are critical to timely funding.

Once an engagement letter is signed, there is a clear idea of the objectives, direction, and timeline for the project.







Do you work on an exclusive basis?

We act exclusively on behalf of our clients. When we are engaged via our mandate letter, we are your exclusive representatives for the financial aspect of the project.


Obviously exclusivity is good for you, but why would I want to obligate myself like that?

There are two main reasons why you must have exclusivity. First, it is impossible to ensure the sanctity of information, correctly position the project in the marketplace, and maintain negotiating credibility, if the process is not managed professionally with a high degree of control. For example, if a lender or investor is approached from more than one source, it weakens your negotiating power.

Second, Link Resource Partners maintains high professional standards and discipline. Our credibility is strengthened in the marketplace through the use of a formal engagement. Furthermore, it is impossible for us to allocate the resources required for a professional process for our client without a mutual commitment.

If a firm does not work on an exclusive basis, you should consider their true value proposition before making a decision to work with them.







You say you act as advocates, what do you mean?

Acting as a client advocate involves a legal aspect and a fit with our value-proposition.

First, Link Resource Partners has a fiduciary duty to our client. We help our clients raise the necessary financing needed. The client pays for our services and we, therefore, have a fiduciary duty to that client. We do not receive any fees from the lender or investor as this would cause a conflict of interest. This is an important aspect to consider when hiring a professional. Link Resource Partners puts their client’s best interest first and foremost.

Second, Link Resource Partners’ value proposition is to provide expertise, knowledge, and advice that our clients do not have the time or expertise. Our clients are composed of businesses that unlikely have internal professionals dedicated to treasury functions. Our involvement often includes providing advice and guidance on treasury matters. Hence, we act as trusted advocates or someone whose objective is to provide the optimal solution to our clients, keeping their interests in mind.







Does investment banking mean taking a company public?

Although the term investment banking is used to describe taking a company public, it also is used to describe numerous other financial activities including buying or selling a company, securing financing, and many other activities.

Link Resource Partners is also involved in the process of taking companies public. A public offering is one of many vehicles used to either effect an exit strategy, raise money, or both. The mistake many firms make is that they view a public offering as the only solution available, rather than considering it to be another possible avenue to meet their objectives. Our strategy is to critically evaluate this option against other alternatives instead of viewing it as a goal in and of itself. In our experience, most firms do not adequately consider all of the advantages and disadvantages of going public; they try to become public too early in their growth cycle or fail to examine other methods to their exit strategy or to gaining additional capital.







You keep referring to the cost of capital. What is it?  

The cost of capital is a core concept of corporate finance, along with availability and risk.

Consider for a moment the simplistic approach to a balance sheet: Businesses employ assets (working capital, plant and equipment etc.) with the objective of making a profit. These assets are funded by solely or a combination of debt and equity. The overall cost of this money is the weighted average cost of capital or WACC.

The main consideration in corporate finance is keeping the cost of capital at its lowest possible point while always meeting the capital requirements of the business without imposing excessive financial risk (the risk of volatility in cash flow, which results in the inability to make payments or other default on debt covenants).







I do not have debt and I do not pay dividends. Isn't my cost of capital zero?

The cost of borrowing in terms of debt financing is the interest payments associated with the debt. There is also a cost of equity capital. In fact, because equity has the highest risk, it also has the highest costs..

When a company raises equity capital, the investor expects a return in exchange for the investment made. Unlike debt, the return to the investor is based on the future earnings of the company, and not an interest rate. After comparing the sources of capital, it becomes clear that the cost of equity is much higher than that of debt. In addition, the more money that is invested in the company (either through direct investment or through retained earnings), the return on equity is lowered. There is always a cost of capital, whether debt, equity, or a combination of the two (the cost of each item on the right hand side of the balance sheet).

Maximizing the wealth of existing shareholders goes hand in hand with striving for the lowest cost of capital. This is exactly what we spend a considerable amount of time working on with our clients; we seek to maximize returns while balancing both business and financial risk.

We would be more than happy to set up a meeting with you to discuss your available options and discuss how our recommendations will positively affect your business.