Purpose: The purpose of corporate finance is to help you to obtain the right type and amount of debt or subordinated debt or equity financing, to help sell your business or expand through acquisition, and to help finance the future transition of your business ownership to employees, family members or other third parties.

Intended Results:  The intended results are designing a financial structure, managing cash flow, accessing required capital to fund future operations of your business and helping you grow to the next level. Mergers, acquisitions and divestitures represent strategic methods to improve your value and wealth by growing or by realizing cash for parts of your business that you are selling.

Structure: Financing is straightforward and usually driven by your need for additional capital to expand your business. Financing can take from one month to several months for complicated transactions involving subordinated debt or private equity investments. Mergers, acquisitions or divestitures may be driven by you or you may be faced with a market opportunity that presents itself. These transactions take from a few months to up to a year. Buying or selling a privately held business is a lengthy process that needs to allow for the owner to ‘let go' and become emotionally prepared for life without the business.

Questionnaire:

1=very poor. 2=poor. 3=below average. 4=average. 5=good. 6=excellent.

Using the above scale, how would your rate your company on the following:

1. You know the value of your business.
2. Your business is properly capitalized with the right types and amounts of financing.
3. You have a good working capital position (current ratio 2:1 or higher).
4. You have sufficient financing to facilitate 20% annual growth in the future.
5. Your debt to equity is 2:1 or less.
6. You have equity on your balance sheet to support additional debt.
7. You have prepared an exit strategy and specified the date you will leave.
8. You have identified potential strategic purchasers for your business.
9. You have an emergency succession plan that specifies how your business will run in your untimely absence.
10. Your personal wealth is protected and not all tied up in the business assets.

To discuss your results to this questionnaire and how our services can help you achieve both your business and personal goals, please call Phil at 866.537.9111.