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
- 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.