Optimizing Your Company’s Capital Structure
Having an optimal financial structure is vital for the maximization of corporate value, and assuring that the owners are taking on the right amount of risk.
While most financing is achieved through either debt or equity, there are also a number of hybrid or mezzanine instruments such as preferred shares and convertible debt. Debt comes in many forms: leasing, factoring, mortgages, second mortgages, senior debt, subordinated debt, revolving loans, demand loans, etc. You might even explore a sale and leaseback of real estate or other assets to raise working capital or expansion capital. The sale of a brand and signing a royalty agreement for its continued use is becoming more common. The rules and regulations regarding financing are not universal and vary from jurisdiction to jurisdiction. Tax implications of different forms of financing also vary across jurisdictions. Are you confident that your capital structure is optimized?
Robbinex can help you work through these issues, or if you believe that you have an appropriate financial structure, we can provide you with an independent third party review, which by the way, will likely correspond to how most investors would perceive your financial structure.