The Handbook of Financing Growth Strategies, Capital Structure, and M&A Transactions

by Marks, Kenneth H.; Robbins, Larry E.; Fernandez, Gonzalo; Funkhouser, John P.; Williams, D. L.

• ISBN13: 9780470390153
• ISBN10: 0470390158
• Edition: 2nd
• Format: Hardcover
• Copyright: 2009-09-08
• Publisher: Wiley

Summary

Second EditionThe handbook of Financing GrowthStrategies, Capital Structure, and M&A TransactionsKenneth H. Marks, Larry E. Robbins, Gonzalo Fernandez, John P. Funkhouser, and D.L. WilliamsPraise for The handbook of Financing Growth"Once again, Kenneth Marks and company have hit the mark with a comprehensive analysis of corporate and commercial finance, which is both readable and up-to-date. This book is a must for any entrepreneur, middle-market company CFO, or graduate student looking for a thorough presentation of real world financial solutions. I highly recommend it." --Barry D. Yelton, Senior Vice President and Region Manager, Federal National Payables, Inc."This is a valuable tool to anyone raising capital. I've seen firsthand how the current environment is filled with dead ends for those seeking to grow their business. Having a blueprint for the process will save time and resources; two things any growth company can ill afford to spend. By looking at the process and explaining the various components of how capital forms, the authors provide necessary insight toward a productive effort. Anyone considering a capital raise should embark on that journey with this resource." --Christopher Gaertner, Head of Technology Investment Banking, Managing Director, Merrill Lynch"All principals involved in financing their growth should keep a copy of this book handy and refer to it frequently for guidance. It provides clear guidelines and case studies that can be used by any of the 27 million firms in the U.S. that want to grow." --James F. Smith, PhD, Chief Economist, Parsec Financial Management"Ken Marks and team have done a great service here to top management of middle-market companies, their advisors, as well as the investment community in understanding growth financing. This book is a perfect combination of being comprehensive (the glossary alone contains over 650 terms) yet very understandable. Too bad that more books written on this subject aren't written the way this one is." --Bob Grabill, President and CEO, Chief Executive Network"I am enthusiastic about this Second Edition of The Handbook of Financing Growth. The authors have updated chapters throughout and introduced a very useful, 'new project leadership' tool in Chapter 2. I can't imagine a more complete business financing guide. And, because of the tremendous amount of business wisdom contained herein, this book is valuable for its general business planning guidance alone. Highly recommended; a copy belongs in every entrepreneur's library!" --Peter Pflasterer, entrepreneur and founder, JPS Communications, Inc."Considering the many financing challenges in the midst of our global recession, as a leading trade association for M&A professionals, we believe the new edition of The Handbook of Financing Growth is essential reading for any business owner, advisor, or investor. This ambitious sharing of 'hands on' experiences will surely prove to be very rewarding for any decision maker in the private capital marketplace today!" --Michael R. Nall, CPA, CM & AA, and founder, Alliance of M&A Advisors

Author Biography

Kenneth H. Marks is the founder and Managing Partner of High Rock Partners, Inc. He has been involved as a manager, advisor, and board member with over two dozen emerging growth and middle-market companies. Marks was a member of the Young Presidents' Organization (YPO) while growing his first company. He teaches in executive programs at Loyola University Chicago and North Carolina State University. Marks obtained his MBA from the Kenan-Flagler Business School at the University of North Carolina in Chapel Hill and is a Certified Merger & Acquisition Advisor.

Larry E. Robbins is a founding partner of Wyrick Robbins Yates & Ponton LLP, a premier law firm located in North Carolina. He is a leading attorney in North Carolina middle-market financing and M&A transactions. Robbins received his BA, MBA, and JD from the University of North Carolina at Chapel Hill. He was also a Morehead Scholar at UNC.

Gonzalo FernÁNdez is a partner with High Rock Partners, Inc. and a retired vice president and controller of ITT's telecom business in Raleigh, North Carolina. He received a BA in accounting from Havana University, Cuba, and wrote the book, Estados Financieros (Financial Statements, Third Edition).

John P. Funkhouser has been a partner with two venture capital funds and operated as chief executive officer of four companies in a variety of industries. He worked in commercial banking with Chemical Bank of New York, in investment banking with Wheat First Securities, Inc., and in venture capital with Hillcrest Group. Funkhouser has an undergraduate degree from Princeton University and an MBA from the University of Virginia, Graduate School of Business.

D.L. Williams is a managing partner of High Rock Partners, Inc. As a CEO for over twenty-five years, he led three global manufacturing/technology companies through major transitions—two of which he led the buyout of, working with private equity firms. As an advisor, he has worked with companies in numerous industries on growth, operational, and turnaround strategies to create value and implement change. Williams obtained his MBA from the Kenan-Flagler Business School at the University of North Carolina in Chapel Hill.

Table of Contents

Foreword

Preface

Acknowledgements

About The Authors

The Financing Process

Introduction

Planning and Alignment (ôBegin with the End in Mindö).

An Overview of the Planning Process

Strategic Planning using the Growth Strategy Navigator^TM.

Updated Forecast

Business Valuation

Acquisitions, Recapitalizations, and Exits

Selling the Company / Creating Shareholder Liquidity

Capital Structure & Financing Strategy

Assimilating the Drivers

Developing Liability Limits

Sources of Capital and What to Expect

Bootstrapping Sources and Techniques.

Individual Investors (Private Placements Not from Angels or Institutions)

Angel Investors

Commercial Banks

Asset-Based Lenders

Commercial Finance Companies

Leasing Companies

Private Equity

Venture Capital Funds

Mezzanine Funds

Buyout Funds

Hedge Funds

Strategic or Industry InvestorsùCorporate Venture Capital

Merchant Banks

Community Development Initiatives and Government Agencies

Micro-Cap Public Entities

Royalty Financing

Equity and Debt Financings: Documentation and Regulatory Sources of Capital and What to Expect

Compliance with Securities Laws

Basic Definition of Debt and Equity

Debt Instruments

Loan Documentation

Equity Instruments

Equity Investment Documentation

Compliance with Securities Laws

Expert SupportùThe Players and Their Roles

Counsel

Board of Directors

Investment Bankers

Accountants

Consultants/Advisers

Summary

Closing the Deal

Process Check-in

Final Perspective

Case Studies

Case Study 1

Case Study 2

Case Study 3

Case Study 4

Case Study 5

Case Study 6

Case Study 7

Case Study 8

Case Study 9

Case Study 10

Case Study 11

Case Study 12

Case Study 13

Case Study 14

Case Study 15

Case Study 16

Case Study 17

Case Study 18

Case Study 19

Case Study 20

Case Study 21

Financing Source Directory

Suggested Use of the Directory Section

Appendices

Corporate Finance Primer

Financial Statements

Discount Rates

How Fast Can Your Company Afford to Grow?

Notes about Start-Ups

Accounting Principles - GAAP and IFRS

Glossary

Notes

Index

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