Raising Capital in the Private Equity Market

Raising Capital in the Private Equity Market

Richard Vinci

Managing Partner

Newbury, Piret & Co.

For the owners of family businesses, access to fairly priced capital from dependable sources can be a crucial component to the successful operation, management and growth of the business.

More often than not, outside capital is provided by the respective companys commercial banker.  In favorable times, this relationship may be all that management needs to secure the capital required to fuel the implementation of its business plan. However, what does the family business owner do when the commercial bank is “tapped out” or when credit policies and regulatory pressures make borrowing difficult, restrictive or unavailable?  When the credit markets are challenging, it is frequently valuable to explore the strategic financial alternatives available in the Private Equity market.

What are the signs that the capital markets are pulling back? Aside from the often dire statistics and information provided by business and news publications and the leading indicators, the following are some key signals: More…

Life Disposition of the Family Business

Life Disposition
of the Family Business

Succeeding Generations
Fall, 1996

by Barbara Gill, CLU, ChFC, CFBS
& Dale J. Seymour, CLU, ChFC, CFBS

Seymour and Associates

Retiring from the family business?What does one do?Sell to other family members?Sell to an outsider?Perhaps retain the family business and gift portions annually to other family members.What about an installment sale or private annuity?Is an ESOP an alternative?What about charitable remainder trust?How does one structure the deal so that the buyer can afford to buy and the seller can afford to retire?Fortunately, there are many creative planning opportunities available to assist the family business owner who desire to create an exit strategy.Planning in advance becomes the key.

Without question, there are many choices to be made regarding business transfers during a lifetime.One option the family business owner always struggles with is whether or not to sell the family business to family members or an outside third party.In the event of structuring a sale with family members, several particular questions should be addressed. More…