RESOURCES

Uses of Financing

Whether your goal is a management buyout, growth financing, recapitalization, or a turnaround, our Uses of Financing section can start you on the right path. It explains the basics of common corporate transactions and the types of financing associated with each, describes the team you'll need to assemble and the best approaches to take to execute your strategy.

Acquisition Financing

One of the most powerful ways to propel your company's growth, leapfrog your competition and enhance the value of your company is to make a series of acquisitions. To accomplish this, you must have in place a team of professionals and financing sources that will move rapidly and aggressively to support your acquisition strategy.

American Capital's Acquisition Financing section will provide you an overview of the acquisition transaction process and capital structure. We can help you with debt and equity financing to successfully implement an acquisition strategy.

Employee Buyout

Increasingly, employees have come to expect ownership of the company for which they work. Employees are able to team up with private equity investors to buy their company. These employee buyouts have substantial tax and cash flow benefits that can make a mediocre company fast-growing and highly competitive.

Use our employee buyout section if you are an owner interested in selling your company to your employees or if you are an employee and want to buy your company.

ESOP Financing

Countless studies have shown that employee ownership motivates employees to improve productivity, the quality of their work and the competitiveness of their company. It also lowers a company's corporate taxes. Learn more in our ESOP financing section.

Growth Financing

The most common use of financing is to fund a company's growth. Whether the need is to fund construction of a new facility, to increase working capital or to finance a new product line, American Capital can help you to determine the optimal capital structure and provide appropriate financing.

Management Buyout

Managers often team up with private equity investors to purchase an entire company, a subsidiary, a division or a product line. Often, a combination of debt and equity financing is used. If you are interested in selling your company to your managers, or if you are a manager interested in pursuing a buyout, please enter our Management Buyout section.

Recapitalization

Occasionally, a private business will have several owners, and one or more may want to sell a portion or all of his or her stock. The remaining owners will have to come up with the money needed to buy out their co-owner. If the funds aren't readily available, a recapitalization of the company will be necessary.

Regional banks--the primary source of financing to small and midsize companies--typically won't extend a business loan for a recapitalization. We can provide you with the capital your need to fund a recapitalization transaction.

Rollups

A rollup is a strategy of buying several companies in one industry at once or in rapid succession to gain a variety of advantages for your business, such as economies of scale, a broader product line and customer base, and cheaper access to capital. Rollups tend to be complicated transactions and should be implemented by an experienced team of financial professionals. American Capital will help you pull together the team and provide the financing you'll need to implement a successful rollup strategy.

Turnarounds

A turnaround entails the purchase of a company that is in bankruptcy or has had an extended run of poor performance. Financing these companies often includes senior and subordinated debt and equity. It is also common for a new management team to be hired at or about the time of the change in ownership. American Capital is an expert at assisting companies in structuring and financing turnaround transactions.