Achieving Balance Sheet Stability and Working Capital Strength

Powering Recovery and Growth—

Working Capital Support and Balance Shee.

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Oct. 7, 2020

The economic fallout from this year’s pandemic has caused distress for businesses across diverse industry sectors. And, despite limited relief under CARES Act loan programs, the resulting slowdown has left many private companies in a constrained working capital and over-leveraged condition. Frequently, these companies feel they’ve been backed into an intractable position of impaired economic health and limited financing alternatives along with an increased risk of failure.

The good news is that avenues exist for private companies to reacquire their financial

strength and re-ignite the growth they envisioned before the downturn. Primary financing related objectives usually include: creating working capital availability, rationalizing the debt to equity ratio and relieving immediate debt-service burdens.

Solutions to accomplish those objectives range from debt restructurings with current

lenders, new lender financings and government loan enhancement programs to balance

sheet strengthening with patient capital. Considerations also may include partnering with a stronger industry player or a private equity firm to bring-in new capital for strategic growth, including acquisitions that improve competitive advantage.

CIP Capital Advisors assists private companies in developing and implementing solutions to the challenges that impair recovery and growth. We understand what it takes to achieve success. A CIP Capital executive would be pleased to discuss your particular situation on a strictly confidential basis; feel free to contact us.