Corporate Finance
Typical Transactions
Whether your goal is financing growth, expansion, recapitalization, a turnaround, or a large-scale project, Travelers’ Corporate Finance team can start you on the right path
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 corporate 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.
Travelers can provide you with the necessary tools to attract capital. We can refer you to professionals with appropriate transaction experience and sources of business loans and equity financing who can help you successfully implement an acquisition strategy.
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Asset Based Loans – Growth Financing
The most common use of business loans is to fund a company's growth. Whether it is to fund construction of a new facility, to increase working capital or to finance a new product line, Travelers can help you to determine the proper capital structure and raise the cheapest financing.
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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.
Contact Travelers 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.
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ESOP Financing
Countless studies have shown that employee share ownership motivates employees to improve their productivity, the quality of their work and the competitiveness of their company. It also lowers a company's corporate taxes.
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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 contact Travelers.
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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. Travelers can help you source the capital needed to fund a recapitalization.
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Retiring Owner
A business owner's decision to retire often results in a change in ownership of the company. As a seller, your options include transferring ownership to family members, key managers and employees, a strategic buyer or a financial buyer. Careful advance planning can help you resolve financial, management, personal and other issues related your company's future.
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Rollups
A rollup is a strategy of buying several companies in one industry at once or in rapid succession to gain a variety of corporate benefits, such as economies of scale, a broader product line and customer base and cheaper access to capital. Rollups are very complicated transactions and should be implemented by an experienced team of financial professionals. Travelers will help you finance a successful rollup strategy.
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Turnarounds:
A turnaround entails the buying of a company that is in bankruptcy or has had an extended run of poor performance. Financing these companies often includes the issuance of senior and subordinate 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. Travelers can assist you in structuring a turnaround transaction.
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