#262: Accessing Capital: Funding Your Company’s Growth Using Non-Control Capital

On today’s show, I’ll be talking with Billy Amberg about accessing a unique type of capital: non-control growth capital. If you’re looking to fund your growth but don’t want to sell a controlling stake in your company, or you’re not a fit for a traditional bank, or you just want to tap into your largest financial asset, then this episode is for you. Billy is going to be talking about the entire sector of non-controlled growth capital, why it's needed, where it comes from, the terms and conditions that come with it, and the circumstances when it is most applicable. Tune in for a detailed rundown of how to make this type of funding work for you, without opening up your business to a whole bunch of risk.

 
What You Will Learn In Today's Podcast Interview

 

What’s going on in the current M&A marketplace
The definition of non-control capital: the various types, how to structure it and where it comes from
Billy’s definition of an institutional investor
How traditional private equity compares to non-control capital funding
The different roles of debt and equity when looking to raise capital
The different reasons entrepreneurs are looking for growth capital (e.g., acquisitions or distributions)
How to view your business through an investment banker’s eyes
What factors make owners resistant to different types of investors and buyers
Why Billy says the lines between venture capital and private equity are blurring
Why middle market private equity firms already have another buyer lined up for your business, before you even sign on the dotted line
What it's like having an investor sit at the table and what you should expect

Are You Growing The Value of Your Business

Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board.

Are your company's current initiatives intentionally designed to increase the value of the business?
Do you know what you want from your business long term and why?
Do you know what your company is worth?
Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers?
Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?

 
About the Guest:

Billy Amberg is a managing director of Corporate Finance Associates (CFA), an international investment banking firm specializing in the middle market, as well as owner of Bloomwood Capital, which provides highly differentiated land conservation investment services. He has embraced the entrepreneurial spirit throughout his career, making an impact at elite wall-street firms as a principal in venture capital and private equity, and starting and running several successful businesses. Billy has also successfully performed in the three key roles for any transaction: owner, investor and banker.

 
Quotes:

04:46  - “If you really want to get good at this, you really need to start building relationships because that’s harder to teach, the older you get.” – Billy Amberg

09:26  - “The real standout, which I think is going to continue, is going to be technology because every business is a technology business now. Or, at least, that’s what the capital providers like to see.” – Billy Amberg

09:48  - “In the non-tech space, what I have told a lot of our client

On today’s show, I’ll be talking with Billy Amberg about accessing a unique type of capital: non-control growth capital. If you’re looking to fund your growth but don’t want to sell a controlling stake in your company, or you’re not a fit for a traditional bank, or you just want to tap into your largest financial asset, then this episode is for you. Billy is going to be talking about the entire sector of non-controlled growth capital, why it's needed, where it comes from, the terms and conditions that come with it, and the circumstances when it is most applicable. Tune in for a detailed rundown of how to make this type of funding work for you, without opening up your business to a whole bunch of risk.

 
What You Will Learn In Today's Podcast Interview

 

What’s going on in the current M&A marketplace
The definition of non-control capital: the various types, how to structure it and where it comes from
Billy’s definition of an institutional investor
How traditional private equity compares to non-control capital funding
The different roles of debt and equity when looking to raise capital
The different reasons entrepreneurs are looking for growth capital (e.g., acquisitions or distributions)
How to view your business through an investment banker’s eyes
What factors make owners resistant to different types of investors and buyers
Why Billy says the lines between venture capital and private equity are blurring
Why middle market private equity firms already have another buyer lined up for your business, before you even sign on the dotted line
What it's like having an investor sit at the table and what you should expect

Are You Growing The Value of Your Business

Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board.

Are your company's current initiatives intentionally designed to increase the value of the business?
Do you know what you want from your business long term and why?
Do you know what your company is worth?
Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers?
Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?

 
About the Guest:

Billy Amberg is a managing director of Corporate Finance Associates (CFA), an international investment banking firm specializing in the middle market, as well as owner of Bloomwood Capital, which provides highly differentiated land conservation investment services. He has embraced the entrepreneurial spirit throughout his career, making an impact at elite wall-street firms as a principal in venture capital and private equity, and starting and running several successful businesses. Billy has also successfully performed in the three key roles for any transaction: owner, investor and banker.

 
Quotes:

04:46  - “If you really want to get good at this, you really need to start building relationships because that’s harder to teach, the older you get.” – Billy Amberg

09:26  - “The real standout, which I think is going to continue, is going to be technology because every business is a technology business now. Or, at least, that’s what the capital providers like to see.” – Billy Amberg

09:48  - “In the non-tech space, what I have told a lot of our clients--‘cause we get a lot of clients after they’ve already gotten letters of intent or offers--is ‘Oh okay this is a really good offer.’ Well, okay, Joe Businessowner. But think about why it’s good for them to offer you that much. And don’t take that offer until you understand that.” – Billy Amberg

16:49  - “It’s hard to guarantee that the legacy of your company stays intact with a large private equity fund because at the end of the day they have control.” – Billy Amberg

22:38  - “People don’t understand that growth is expensive. So it’s interesting to hear how this available tool can free up some cash without selling your soul.” – Ryan Tansom

25:21  - “So for a while businesses have been divided into sexy, and that’s what venture capitalists were, and not so sexy (which is… makes boxes, nuts and bolts, tires, waste management..” – Billy Amberg

 

Links and Resources:

Billy Amberg, email: [email protected]

Corporate Finance Associates

Mastering Your Cash Flow Digital Course

ARKONA Boot Camp

Reach out to me if you have questions about the boot camp!

 

You can also reach out to me via email at [email protected], or on my LinkedIn.