How We Help Independent Companies
Whether a company is family/founder-owned, private capital-backed or publicly-traded, CEO’s and CFO’s of middle-market companies (generally $100 million to $1 billion of Revenues) face a daunting task of accessing a highly fragmented lending landscape today. Unlike PE firms, most independent companies are relatively infrequent borrowers. And their CEO’s and CFO’s are hands-on operators of the business with many critical responsibilities, which consume their daily schedules. So accessing the market every 3-5 years makes it very difficult for them to stay up-to-date on the current market trends on pricing, terms, structures, and the most appropriate/competitive lenders.
For most companies, debt financing has a significant impact on the P&L (esp. if related to an acquisition or investment). And there are many other important aspects in a credit agreement (covenants, amortization, pre-payment / call structure, etc), which can negatively impact the operations and strategic direction of the company if inappropriately structured. In addition, lenders have an inherent conflict and bias in advising on the best deal terms and structure for their client vs. the best deal for them.
All of these are important reasons why companies should have an independent conflict-free advisor sitting “on their side of the table” to help them navigate this fragmented and confusing lending landscape. Our breadth of lender relationships, knowledge of current market trends and terms, and ability to run an effective “financing process” allow company CEO’s / CFO’s to achieve the best rate, pricing, and terms in the market. This ultimately provides them more capital to re-invest in the company and significantly more time to focus on the critical operational and strategic aspects of running their business.