HFBE meets with you to understand your basic strategic and financial needs and analyzes your company’s financial and operating record and outlook. HFBE recommends a capital/cash management and access strategy. We prepare a private offering memorandum with input from management. HFBE assists in structuring, negotiations, and documentation.
Acquiring equity capital is a critical decision. There are times when the public market is not an option for raising equity capital. Private equity investors have become very specialized. HFBE helps you find the right capital source. A sound business purpose is essential but not sufficient to obtaining financing. The cost of money, that is, the size of equity ownership of your business required by the investor, depends on the amount being raised and the current and prospective value of your business.
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Under appropriate conditions, debt may best fulfill capital needs. Proper structuring of debt can enhance your cash flow and allow you to generate a higher rate of return on invested capital. This financing tool may be utilized in connection with a management buyout, going private or acquisition, a refinancing or restructuring, or as additional expansion capital. HFBE has extensive contacts with commercial banks, asset-based lenders, insurance companies, subordinated debt funds, and other non-bank financing sources to meet all your company’s objectives for debt sourcing. Our experience and knowledge of the marketplace ensures our clients of a competively priced and structured financing.
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HFBE assists in completing both leveraged buyouts and management buyouts. A leveraged buyout (“LBO”) is the acquisition of an existing public or private business by a private investor group and is financed primarily with debt and new equity capital. A management buyout (“MBO”) is a leveraged buyout in which the acquired company’s incumbent management team participates in the buying group. HFBE can assist in completing both leveraged buyouts and management buyouts. We advise the operating management or a financial sponsor group on the purchase of an existing company or the acquisition of an operating division or product line of either a public or private company. Additionally, we work with experienced management teams seeking to acquire or start companies within their industries of expertise, advise management teams within companies to assist them in acquiring their divisions, as well as provide ongoing financial advisory support up to and including add-on acquisitions and the initial public offering (“IPO”) process.
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