Value Unleashed

Conditions in the credit markets are at an all time high for borrowers. Increasing amounts of capital is available for growth, acquisitions, and shareholder liquidity. For companies in the Canadian middle market, information on the type, amount, and terms associated with the capital is nearly impossible to find. Running a competitive financing process and canvassing a full compliment of lenders is the best way to your optimizing your liquidity and flexibility from debt, however that can sideline a finance team for 5 months. What is one to do? Read on…

The key measure of financial success for a business owner is value creation. Shareholder value is created when the return on invested capital in the business exceeds that business’ cost of capital. We find that owners of mid-sized businesses often have ample high-return investment opportunities that are not pursued because they perceive capital to be scarce. Shareholder value creation often suffers as a result. Read on for our views on why debt is the indispensable value creation tool.