Raising Capital in the Private Equity Market
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…