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What does an optimal financial solution mean?
It is the best balance of minimizing the cost of capital and at the same time, not creating unnecessary high levels of risk.
Many businesses immediately turn to equity investments when they need capital, usually with the belief that a debt solution is not available. Our strategic advantage is that we give our clients access to debt and equity markets. It is valuable to consider a debt solution as it avoids dilution equity and it can dramatically increase the client’s returns.
For example, if your company needs access to additional working capital because of a seasonal trend and your bank will not provide a bulge, a short-term factoring solution, mezzanine or sub-debt might be a better solution than switching banks or selling equity. The point is that we are able to help you achieve the best solution due to our experience and expertise in understanding all of the available alternatives to our clients problem.
Our approach with any project or client is simple. First, we identify the business issues and, with the client, agree on a financing strategy. Together we consider the following issues: the sources of financing most likely to be available, our client’s optimal debt/equity mix, possibly using hybrid products, and the appropriate timing. Second, we address the critical business issues and generate the requisite financial and business information. Third, we go to the market and proactively work through the lending cycle. Finally, we ensure that the transaction receives the appropriate funding.
Often transactions involve multiple creditors and, therefore, necessitate inter-creditor agreements. Our deals survive the legal process due to our thorough analysis right from the start. Delivering on everyone’s expectations and protecting the client’s best interests through this process requires deep experience and leadership on our behalf.
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