Businesses need to constantly review their Balance Sheets as to how they are financed, especially in times of growth and expansion.
The last economic recession, from which a large number of companies are still only emerging, showed how undercapitalised a large number of Irish businesses were with far too much reliance placed on debt and in a lot of cases the wrong type of debt. Businesses need to have the expertise available to them to ensure that their Balance Sheets carry the right mix of equity and debt, in addition to ensuring that debt terms are best suited to the profile of their business and most importantly their cashflow.
However, accessing the required finance often becomes a huge distraction from the other aspects of the business, taking huge amounts of time, just when the company’s management need to be focusing on driving growth.
This is where CAIM can help you
Growing and scaling a business requires planning and financing for which skill, expertise and experience from a trusted independent professional may be required. Without a proper plan and the financing to implement it, growth will not be achieved as quickly or as efficiently and opportunities will be lost.
CAIM members have the expertise, contacts, and the creditability to assist your business in planning and accessing the best sources of finance to facilitate growth and expansion.
Experts from CAIM will assess your business, – financial, market conditions, business practices and management – and work with you to optimise the financing package best suited to the business. At the heart of this, in most cases, will be helping to prepare a business plan so the business is better positioned to access finance to either refinance an existing position, take advantage of an opportunity or to rebalance the existing ‘debt and equity stack’ to best suit the business’s needs.
Debt or Equity Financing
Traditionally, the choice was between debt or equity financing depending on factors like return, free cash flow, term of financing and supporting collateral / security. However, financing options are now available under many guises, many of which have elements of both debt and equity.
A CAIM professional can greatly assist a company to better match the needs of the company with those of the finance provider to help optimise the sources of funds available, both in terms of flexibility and cost.
CAIM professionals are very knowledgeable about the numerous different sources of finance available, be it Equity, Working Capital (invoice discounting and asset finance options), secured Term Debt options, Mezzanine Instruments, and Convertible Instruments.
CAIM experts bring the credibility of having done this successfully many times across the following industry sectors; Hospitality, Telecoms, Manufacturing, Retail, Medical, Life Sciences and Professional Services.
Many businesses that have come successfully through the economic downturn now find that for the first time in many years there are opportunities open to them to grow and expand their businesses.
This can arise from
- Consolidation opportunities within their sectors
- Takeover of competitors with weaker Balance Sheets and management teams
- New market opportunities whether through product development, distribution channels or the improved technology
- International expansion into new markets or further growth in existing overseas markets (for example managing the implications of Brexit), and possible
- Opportunistic situations which can develop.
CAIM professionals, many who are very experienced former bankers or FD’s / CFO’s can play a big part in helping these businesses ensure that they prepared and funded to take advantage of opportunities as they arise.
Build a Profitable Future
A bright future is built on sound financial health. Solid financial health considers past results and future opportunities, always considering what is best for the business and the people who work in it. Putting all these together, CAIM professionals create with you a strategy and from that strategy a funded business plan that will allow a business to expand and grow profitability.
CAIM is an independent professional network, working for its members, matching resources and specialist skillsets with introductions and customer requirements. There is countrywide coverage of highly experienced individuals willing to work on assignments on an agreed flexible basis, based on the needs of the customer.
CAIM members with expertise in raising finance for businesses / customers bring a range of sector experience and can ‘hit the ground running’. For further information and biographies of specialists in this area please see our dedicated CAIM website;
Select a Fixing Finance specialist on this Fundraising Support page.
Article written by John Dunleavy, visit John’s professional profile.