There are a number of ways in which our capital can support the growth of your company, including:
- Facility expansion
- Sales and marketing initiatives
- Capital expenditure and equipment purchase
- Acquisitions
- New product development
- Pay down debt and free up cash being used for debt service
In addition, Emerging Growth Equity can provide partial liquidity for current shareholders in situations where there is a need to facilitate a change of control to the next generation of management.
Alternatives to growth capital:
Until a company reaches significant scale, owners face few alternatives when securing capital, none of which allow the business to freely pursue its maximum potential.
Personally guaranteed bank debt requires significant debt service expense, puts the owner’s personal assets at risk, and can be difficult to secure in a tough lending environment.
Owners, friends and family can personally lend money back to the company, putting personal assets at risk and in most cases limiting the amount of funds available and the addition of future funding.
Mezzanine debt has high current debt service requirements and restrictive covenants and very rarely includes value-added advisors or operators.
Private equity firms traditionally are only available to companies with significant free cash flow.
Venture Capital firms only target industry-changing firms that target selective, large markets where IPO options are likely.
Ultimately, growth capital can take on many forms. In our experience, we’ve learned that sustainable growth also requires committed partners and active advisors. We are committed to making available expertise and resources focused on strategy and execution, facilitating the most effective use of capital.
In our view, there is a marked difference between simply taking on growth capital versus taking on a growth partner.