FEATURES
The Middle Market — Leading the Way to Future Growth - In his analysis of this year's second quarter survey results from The National Center for the Middle Market, GE Capital's Robert McCarrick notes that mid-market executives are optimistic about their prospects for growth, are ready to invest capital and plan to add workers, despite concerns about rising healthcare costs and the likely return of more costly credit.
Reversal in Sentiment — Phoenix Management Q2 Survey Reveals Waning Lender Optimism - The results of Phoenix Management's Q1/13 “Lending Climate in America” survey showed improvement in all metrics. However, lenders' optimism waned in Q2, as the survey indicated substantial moderation in expectations for commercial lending relative to the previous quarter.
ESOP Financing… A Corporate Finance Option That Improves a Company’s Cash-Flow While Strengthening Operational Performance - While ESOPs offer an attractive financing structure, it is important for borrowers to make sure that an ESOP is right for their company’s strategic goals. Ty Dealy, managing director at Monroe Capital, offers tips for CFOs when considering an ESOP financing.
Growing Globally… Financial Execs & Banking Partners Join Forces to Improve Efficiency, Save Capital - Financial executives and their banking partners have become more innovative as companies increasingly look for business opportunities in global markets. Here’s how three U.S. companies navigated the challenges.
Finding the Right Fit… Bank-Owned or Independent Lender? - Associated Commercial Finance executive Mark Wierman goes head to head with First Capital executive vice president John Curtis in a lively debate about what some of the considerations are when a perspective ABL borrower contemplates dealing with a bank versus an independent.
Certainty in a Partner… CIT Sponsor Finance Provides Expertise, Commitment to PE Clients - In a wide-ranging Q&A, ABF Journal engages Thomas Hobbis and Jeffrey Kilrea, co-heads and managing directors of CIT Sponsor Finance, to get their collective thoughts and insights into the current environment of originating and closing deals with private equity companies.
The Post-Recession Environment… A ‘Mixed Bag’ for Factoring Companies - Neville Grusd, COO at Merchants Factors, provides commentary on how the factoring industry changed in the post-recession environment and walks us through a series of scenarios that give dimension to this multi-faceted industry. Grusd adds a few thought-provoking insights to provide texture in describing why the current environment is a "mixed bag" for factors.
COMPANY/EXECUTIVE PROFILE
Young and Lean — Armstrong Builds Foundation to Grow GA Capital - In May 2012, Great American Group announced that it appointed Stuart Armstrong as president of GA Capital. Recently, he met with ABF Journal contributing editor Howard Brod Brownstein to discuss GA Capital's evolution and to explore Armstrong's deep industry experience, which includes serving as an executive with GE Capital and launching Tygris Commercial Finance.
Best of Both Worlds — Trade Capital & AR/PO Groups Join Forces at Wells Fargo Capital Finance - Under Stuart Brister's leadership, the recently launched Commercial Services Division of Wells Fargo Capital Finance brings together the company's trade capital business and AR/PO financing group under one umbrella, resulting in greater operational and marketing efficiencies and providing the opportunity to broaden the unit's product offerings and geographic reach.
Planning for Growth… RBS Citizens Expands Business Capital Group - The ABF Journal spends time with Christopher R. Carmosino, president of RBS Citizens Business Capital, to discuss the group's expertise, recent expansion and the current state of the ABL marketplace.
NXT Capital — Solid Growth Validates Company’s Platform & Vision - ABF Journal contributing editor Howard Brod Brownstein spends time with Robert Radway, chairman and CEO of NXT Capital, to discuss how the company has developed since its 2010 launch, including closing more than 232 deals totaling $5.3 billion in commitments through June 2013.
FROM ALL FACETS
TURNAROUND CORNER
You Need These Folks — Six Ways Outside Directors Impact Business Growth - Turnaround management expert John Collard points out that adding outside directors to a private company's board can generate six key advantages — independent perspective, strategic thinking and planning, experience and objectivity, contacts, capital infusion and deals.
SPECIALTY LENDING SHOP
Liquidity & Sustainability — Purchase Order Funding Helping CFOs Manage & Promote Growth - Since the recession, a CFO’s job is ever changing and increasingly complex, according to King Trade Capital’s Bryan Ballowe. Among the many hats donned, a CFO’s sole focus is oftentimes seeking access to liquidity and maintaining sustainability. Ballowe explains that purchase order financing offers a valuable resource to help CFOs execute profitable sales opportunities, and thus growth.
BANKRUPTCY UPDATE
Make-Whole Claims in Bankruptcy… Still Flying High & Earning Passing Grades - Inclusion of make-whole claims in a bankruptcy is often a controversial issue between the debtor and creditors. However, as Renée Dailey and Katherine Lindsay point out, despite recent challenges in American Airlines and School Specialty, make-whole claims in bankruptcy are still flying high and earning passing grades.
LEGAL EYES
Mapping the Fall… The Descent From Troubled Company to Bank Fraud Perp - Brian Phillips and Scott Eisenberg of Amherst Partners note that fraudulent activity was uncovered in nearly every significant financial advisory case the firm has encountered over the last two to three years. Here they present two cases (one hypothetical and one real-life) and offer five lender techniques to help reduce bank fraud.
FINAL CUT
FinalCut: PacWest to Acquire CapitalSource; MB Financial to Acquire Taylor Capital - This issue's FinalCut presents a whimsical rendering of the merger of PacWest Bancorp and CapitalSource and MB Financial's acquisition of Taylor Capital.