Transactions > Capitalization

You need seeds to grow profits

Capital structure is one of the most carelessly structured assets of the small and midsize enterprise. It makes no more sense to be debt free than it does to be overextended... both conditions should reflect the optimization of value for the enterprise. If the highest value state for your firm is debt free, then be debt free. If you are capital constrained, and your EBITDA exceeds your risk-adjusted WACC, then borrow until the banks scream uncle (or raise their rates so YOU scream uncle). Should you seek equity investments, or debt? Should you extract cash? Should you reverse merger, register an offering, seek VC funds, seek angel funds, look for change under your cushions, or develop a deep religious faith? What are the tax consequences of any option you consider? Those are the questions we start with.

Kiios can help you to determine the optimal capital structure for your business, and develop a plan to get you there. If that involves debt or investment, we will help you to raise the capital. We will help you to put together your documentation for investors, including your investor presentation materials, and make the best possible case for your application. We can help you to develop a capital transition plan, a bridge, or any other mechanism to get you from your starting point to your optimal point.

Kiios has a unique relationship with many firms in the investment community as a consequence of both its transaction group and its subsidiary group. We don't improve the odds of your fully understood application from being approved or subscribed to, but we do raise the odds of the communication itself being listened to, adjudicated and understood to a near certainty. Like always, we are aligned with your interests. Our compensation is tied to your results. If the optimal capital structure for you requires investment, we should be able to attract investors. If we can't, either we failed you, or we were wrong about the optimal structure (impossible is never optimal). We do require costs and fees to be paid by you, and remedial work is on your dime, not ours, but these items are never a surprise.