Understanding the Nature and Importance of Financing
Corporate financing is often overlooked as being an integral component to the success of a business. The truth is, many businesses have flourished or failed based on their capital structure, and it is critical that it’s given the attention it deserves.
Let’s start with some of the opportunities financing can present:
- Fund an acquisition
- Recapitalize a company
- Execute a large project
The Challenges of Structure and Capital Providers
There are two major challenges that arise when executing a financing plan. The first is how to structure the financing to ensure that it will provide a sustainable path that will lead to your intended goal. Many companies have gone bankrupt because they have raised too much or too little, so how much needs to be raised? What type of instrument will be used – debt or equity? These are the questions that need to be answered and ones that Rabican has been dealing with for over thirty years.
The second challenge comes in the form of the Capital Providers. Once you’ve determined the structure of your financing needs, you need to obtain financing and do so under terms that do not threaten you goals and objectives. Before anything else, it’s important to understand the DNA of the Capital Providers: they represent their own interests (not unlike most businesses). With this in mind, know that obtaining the best deal possible requires robust competition, knowledge of the marketplace, negotiation skills, and sufficient time for negotiations (the more time the better).
After decades of experience in the world of financing and dealing with Capital Providers, Rabican’s skill-set has been honed and sharpened to ensure that its clients are delivered optimal terms and conditions through their financing deals.