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Financing Advisors for Trustee Transactions
In some cases, it can be very hard for business owners and their key advisors to know find attractive banking and financing terms, when their local banks aren't interested in funding growing family businesses with attractive terms. Our Banks and Financing Advisors have a successful history working with family businesses and fund them every year, not just a time or two over many years.
Our Financing and banking firms and other categories represent the best advisors we could find. Our Trustee Advisors have been checked and vetted to assure business owners and their advisors that the person they are looking at is competent, trustworthy and respected in the Trustee Community. There are hundreds of Advisors out there offering Trustee related advice and services, but we have invited only the few who REALLY do many Trustees to be placed on this site.
Finding growth Financing With Sound Advice From Experts
Unless your company has deep reserves of cash on hand, funding for an growing business or buying out a family member typically comes from a third party, such as a bank or private equity firm. In some cases, the selling shareholder would assume the debt personally, rather than borrow from a third party. Choosing the right source of funds can be a difficult task, and even corporate officers who are used to dealing with debt and financing in areas such as investment and expansion can find themselves on uncertain ground.
The Types of Financing Alternatives are:
Commercial Banks: A bank (that accepts deposits) or a division of a bank that mostly deals with deposits and loans for businesses, as opposed to the general public. Generally, this form of banking offers loans that are the least expensive to acquire. Our Trustee Bankers know Trustees and their proper loan structures that will save a company thousands of dollars in fees. Why? Their credit committees are experienced and knowledgeable on family owned companies, thus they don’t add risk premiums and nasty loan covenants other banks would require.
Investment Bankers: Private firms or financial institutions that assists individuals, and companies; to help them raising capital to fund an Acquisition or Shareholder Buy-out Transaction. Our Investment Bankers have decades of experience in assisting business owners with ownership succession.
Merchant Banks: Firms that negotiate for the owners to find or offer private equity investment by financial institutions or themselves in the unregistered securities of either privately or publicly held companies.
Mezzanine Financing: For companies seeking to acquire higher levels of leverage than commercial banks can offer, Mezzanine Financing exists. This form of financing refers to subordinated debt or preferred equity as a claim on a company's assets which is senior only to that of the common shares. Mezzanine financings can be structured either as unsecured and subordinated debt or preferred stock.
Private Equity: A private equity firm invests in operating companies through a variety of ways. For family businesses, they may including leveraged buyouts, acquisition capital, and growth capital for working capital.
Debt incurred while setting up an acquisition, whether it's external or self-financing, has a number of important differences from other obligations, due to the different payout schedule and specific regulations that govern its administration. If your company is planning to acquire other companies as a growth strategy, you cannot do without expert help with soliciting, structuring and negotiating a debt agreement. Our listings will help you find an experienced family business financing advisor who will make the process easy and clear for you.