Strategic Capital Services for Incubation, Growth & Exit of a Business
(1) Merger & Acquisition (M&A) Intermediary, Advocacy & Deal-Maker, (2) Debt or Equity Capital-Finding for near-term acute needs, growth financing or recapitalization, and (3) Early-Stage Business Incubation & Capital-Finding, — are the deliverables from SW&A in Strategic Capital Services.
(4) Strategic Advisory Counsel for Exit-Planning including Sale, Generational Succession, Management BuyOut, or Consolidation(s) is part of the SW&A offering.
Issues involving Capital are among the most delicate, sensitive and critical that any organization faces. At their heart, they touch every stage of a business, including…
- Early-Stage, or Start-Up, or Acquisition, where too often businesses are undercapitalized;
- Growth, where competition for Capital is extraordinary, and most organizations need to think creatively;
- Maturity, when greater flexibility should exist to reduce risk and redeploy Capital; and
- Exit, when understanding how much Capital is in the business, and where, is essential to maximizing the exit value, the raison d’etre, for an Entrepreneur and her or his family.
To address those Client needs, Sam Waltz is a Creative Problem-Solver and Deal-Maker, Intermediary & Advocate. He built his SW&A firm’s “asset value” of relationships and access where his preparation and referral of clients in need of capital is treated with the highest respect and regard.
Character, Credit and Collateral remain indispensable for the SW&A Client in accessing Capital, but the broader array of Capital providers today have greater flexibility in balancing and trading off Risk for Return on Capital. To help his Clients, Sam Waltz works with…
- Commercial Banks;
- Alternative Lenders;
- Mezzanine Finance;
- Special Purpose Lenders;
- Investors; and
- Private Equity Groups.
Part of his services is to reduce the cost of capital by preparation of his clients, via business planning, advice and counsel, and feedback to the client on her or his capital acquisition strategy.
Three important groups of clients find SW&A’s services particularly useful, among them…
- Early-Stage / Start-Up organizations that need early-stage investor capital finding;
- Businesses in Transition that need to address near-term capital needs issues, e.g., repackaging their debt, purchase-order or inventory financing, or even capital to expand, to pay for an acquisition or capital goods or land purchase;
- Entrepreneurs ready to exit a closely-held often middle-market business, or who want to acquire a business to accelerate their growth when organic growth is not sufficient.
Exit Planning, including Sale, Generational Succession, or Consolidation
For the latter group, preparation of an Exit Plan and helping the Entrepreneur through the Sale or Transfer of a closely-held often family-owned middle market business is an extremely serious and sensitive task.
How a business founder grows and exits her or his business has profound consequences in a family legacy. Done well, it helps a family grow together for generations. Done poorly, it seeds feuds that do not heal for generations. Too often, business owners think only of exit strategy in the last year, when in fact they should be thinking of it at every step of the business growth, and it should be integral to how they engage family members in the business.
M&A: Sell-Side & Buy-Side
RLS Associates, headquartered in Wilmington, DE, with offices and staff throughout the Tri-State area, plus Florida and Israel, is the region’s oldest and largest independent middle-market investment banking firm.
Sam Waltz affiliated in 2004 with RLS Associates, where he is one of 16 intermediaries working in the space, about 4-5 of them full-time, the rest – as he does – in concert with his consulting practice.
“Middle Market” in M&A Context of Brokerage & Wall Street
Intermediaries and deal-makers in such firms tend to work with the Middle Market, closely-held businesses with revenues and enterprise values from $2mil-$5mil on the low end to $250mil and more on the high end. Business brokers tend to work in the sub-$2mil revenue space, with C-stores, salons, bodegas, tap rooms, and small storefronts. Wall Street investment bankers tend to work in the more corporate market with enterprise values in excess of $250mil-$500mil on the low-end.