Debt financing is a way to leverage a company that can allow it to pursue investment opportunities. Debt financing includes both secured and unsecured loans. Security involves a form of collateral as an assurance the loan will be repaid.
At Objective Capital Partners, our experienced advisors will come to an understanding of a clients’ objectives and will develop a model to assist the client in determining the optimal leverage of debt financing and dividend payout ratios. We will create a valuation that will help in deciding a companies’ capital structure. Our highly skilled advisors will look at the companies’ value without debt versus its value with debt compared to the cost of business erosion and investor conflicts, or your tax savings.
It is important to Objective Capital Partners that we understand the mix of debt and equity, and balance that against our clients’ growth objectives when determining the amount to leverage.