The Handbook of Financing Growth: Strategies, Capital Structure, and M&A Transactions, 2nd Edition

by Kenneth H. Marks (High Rock Partners, Inc. ); Larry E. Robbins (Wyrick Robbins Yates &; Ponton LLP ); Gonzalo Fernandez (High Rock Partners, Inc. ); John P. Funkhouser; D.L. Williams (High Rock Partners, Inc. )

• ISBN13: 9780470525975
• ISBN10: 0470525975
• Format: eBook
• Copyright: 2009-08-01
• Publisher: Wiley

Summary

Praise 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

Table of Contents

Foreword

Preface

Acknowledgments

About the Authors

The Financing Process

Introduction

Planning and Alignment (Begin with the End in Mind)

An Overview of the Planning Process

Strategic Planning

Updated Forecast

Business Valuation

Acquisitions, Recapitalizations, and Exits

Acquisitions

Selling the Company, Creating Shareholder Liquidity

Capital Structure and 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 Investors-Corporate 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

Basic Definition of Debt and Equity

Debt Instruments

Loan Documentation

Equity Instruments

Equity Investment Documentation

Compliance with Securities Laws

Expert Support-The Players and Their Roles

Counsel

Board of Directors

Investment Bankers

Accountants

Consultants/Advisers

Summary

Closing the Deal

Process Check-in

Final Perspective

Case Studies

Asset-Based Lender, Receivables Financing

Asset-Based Lender, High Risk Loan

Asset-Based Lender, Assignment for Benefit of Creditors

Asset-Based Lender, Acquisition

Asset-Based Lender, Turnaround Funding

Asset-Based Lender, Growth Financing

Commercial Finance, Trade Financing

Angel Investor, Initial Funding and Sale of Company

Venture Capital, Early Stage Growth Equity

Royalty Financing

Venture Capital, Growth Equity

Community Development Finance, Growth Funding

Debt with Revenue Sharing

Mezzanine Investment

Private Equity, Acquisition through Exit

Private Equity, Management Buyout / Partner Exit

Private Equity, Restructuring

Private Equity, Acquisition with Management Participation

Private Equity, Public to Private Transaction

Private Equity, Buy-and-Build Strategy

Financing Source Directory

Suggested Use of the Directory Section

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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