This training activity will provide an in-depth review of the various forms of financing to fund capital projects, acquisitions or to restructure an existing capital structure. It will dive into the practical details of what capital providers are seeking, issues that arise, and how companies should prepare themselves to execute a financing transaction. Through real-life examples, identifying common pitfalls, highlighting key elements and case studies, the training activity will put financial executives in a better position to seek and negotiate with capital providers.
Participants will gain a sense of financing process, terms, and risk associated with multiple types of capital, including term debt and operating lines of credit, asset-based loans, mezzanine finance, private equity, venture capital, public equity markets, and government finance programs. Upon completion, participants should be armed with the tools to either engage in a direct dialogue with various financiers, or better interact with an intermediary / agent working on their behalf.
ObjectivesBy the end of this training activity, the participant will be able to:
- compare key debt terms against a term sheet;
- differentiate between asset-based lending and cash flow-based lending and the pros and cons of each;
- utilize a leveraged buyout framework to infer a suitable return profile for mezzanine financiers and private equity investors;
- compare and contrast the costs and benefits of different types of public capital with private capital for different stages in a company lifecycle.
- Overview of financing strategy and capital markets
- Current state of the capital markets, including benchmarks and rules of thumb regarding realistic financing parameters
- Basic capital structure elements
- Discussion of various forms of financing, including:
- Government financing
- Operating lines and term debt
- Mezzanine and subordinated debt
- Real estate financing
- Private equity
- Venture capital
- Public equity and convertible debentures
- Understanding cost of capital
- Cost of capital and investment decisions
- Financing process and negotiating strategies
This training activity will benefit controllers, chief financial officers, chief executive officers and other financial executives who provide input into, or take the lead, in undertaking a financing transaction within their own enterprises.