Virtually all dynamic businesses require periodic infusions of capital in order to meet expanding operational commitments and finance orderly growth. Indeed, it is almost impossible to overstate the importance to the business enterprise of timely access to appropriate capital markets. Although the capital needs of many concerns can adequately be met by standard banking sources, there often comes a time when the relative inflexibility of commercial banks makes such financing either unattractive, unfeasible or unavailable.

It is almost impossible to overstate the importance to the business enterprise of timely access to appropriate capital markets.

Once outside “normal” banking channels, the financial choices presented to businesses are awesomely complex and varied. Should a business finance with debt, equity, debt with an equity “sweetener” or convertible debt? Is the financing available through institutions, private investors or through a public securities offering? Will investment banking or brokerage assistance be available? If equity is used, what percentage of the company should be offered? Should the stock be common or preferred and, if the latter, how should the preferred be structured? What dividend policy is appropriate?