What are Some Typical Capital Uses?

How capital will be used plays a significant role in how the financing will be structured and what impact it will have on a corporation’s long term financial health. The uses for capital range from small asset up-grades and expansions, right up to corporate acquisitions, mergers and re-structuring. Here is a short-list of some common capital uses:

• Management Buy-Outs
• Leveraged Buy-Outs
• New Shareholder Buy-Ins
• Family Succession
• Mergers & Acquisitions
• Expansions
• Consolidations
• Recapitalizations
• International Growth

In addition to understanding the various forms of financing, how they are structured and the effect they have on a corporation’s books, understanding the various potential uses of capital also plays a significant role in management’s decisions when pursuing financing sources.