Many creative and reliable approaches are relative when seeking funding and proper structuring for the client. One CEO was quite pleased with the approach his investment banking firm took, in attaining funding for his established organization. The approach is described in brevity, below:
The idea of the “staged” approach, is relative and a way of securing old debt, initially. This financial strategy makes use of added layers to the capital structure, with respect to the client’s Capital requirements.
The preceding layers, increased, and were in alignment with the growth of the organization. Although, this creative approach required more time to execute, it provided the client with the benefit of avoiding, from “the get go” the inconvenience of over funding. The investment banking organization, working on behalf of its client, allowed for the low-end tranches of financing to work, correspondingly, with older layers.
In conclusion, when the banker considers raising funds for his client: he or she reviews debt vs. equity. In looking at the two elements, the objective is to determine the organization’s ability to service debt, its risk as to tolerance with regard to financial leveraging, and the dilutive nature of the firm’s equity.
Notes Regarding Martin Lustgarten of Lustgarten Martin of Miami, Florida:
Martin Lustgarten is the illustrious CEO of his established investment banking organization of Lustgarten Marten. Mr. Lustgarten calls Miami, Florida his home. He has been lending his expert investment banking knowledge within the investment banking industry for many years.
Mr. Lustgarten is also a purveyor of vintage style watches. He is a visionary and is a skilled negotiator. The preceding skill-set is a quality which he brings to his business. His strong skills, as it pertains to negotiation, and his appreciation of vintage artifacts, makes him a strong financial contender when reasoning and creativity is needed, regarding corporate funding tasks, or M&A activities.