Financing a Medium-Sized Business

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Presentation Description

Business financing tips and instruction for business owners and management of medium-sized companies.

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Presentation Transcript

Financing Your Business : 

1 Financing Your Business Tools to Raise Capital for a Medium-Sized* Firm 1. Traditional Debt 2. Alternative Debt 3. Equity 4. Blended Debt/Equity *>$20-$50 million in annual revenues

Financing Perspective Innovative Approach : 

2 Financing Perspective Innovative Approach View Your Business As A marketable asset A source of long-term wealth A creator of jobs A source of investment income Yourself Others who believe

Debt Traditional Debt – Bank loans : 

3 Debt Traditional Debt – Bank loans Alternative Debt Asset-based lenders Receivables financing Equipment loans or leasing Hard money lenders Supplier or Vendor financing Venture merchant banks

Equity Sources : 

4 Equity Sources Medium Businesses Joint Ventures Strategic Investors Hedge funds Tap into hedge funds via PIPEs (private investments in public equities) IPOs (public markets) Private equity funds Private placements Venture Capital

What Investors Want : 

5 What Investors Want A strong return on investment Ranges from 8% (friendly, debt) to 40% A clear pay-off date (exit strategy) Typically, 3-7 years A strong management team A base valuation of company A plan to accomplish goals

Blended Debt/Equity : 

6 Blended Debt/Equity Insurance companies Mezzanine finance Acquisition finance

Additional Sources : 

7 Additional Sources Co-branding – combine efforts to reach target market Co-operatives – pool funds Customer deposits or pre-pays Employees (ESOPs…) Economic development grants or bonds Licensing Swaps or bartering

Acquiring Companies Acquisitions : 

8 Acquiring Companies Acquisitions Owner financing Supplier or Vendor financing Mezzanine financing Bank debt or Receivables financing Private equity Earn-outs

Getting Started : 

9 Additional Information: Solving the Capital Equation: Financing Solutions for Small Businesses Available on Amazon Or get the ebook Help! I Need Money for My Business Now!! www.smallbusinessfinancingresource.com Getting Started

Contact Us : 

10 Thank You! Toca Family Business Services Follow my blog, Small Business Finance Forum : http://blog.smallbusinessgrowthcapital.com Contact Us

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