Capital Placement

     Capital placement is closely linked to the planning process, for without effective planning, capital needs cannot be estimated accurately. Therefore, our engagements in capital placement are frequently preceded by the preparation of a business plan and funding request package. This also allows us to represent our clients more effectively as we have been an integral part of the entire planning and funding process.

     As part of the planning process, considerable attention is given to the determination of capital needs and optimal capital structure. Beginning with income projections and projected balance sheet structure, we determine the amount of capital needed for the business. Recommendations are then made for type of funding and its structure. All of these variables are further tempered by sensitivity analysis, allowing us to gauge the effect of varying assumptions on the projected capital need. Once the optimal capital structure is determined, a funding package is prepared. We then move into the debt or equity (private placement only) markets for actual placement.

     C. J. Harris and Company has numerous resources it can tap in capital placement. For one, our career experience in lending grants us the perspective of the lender, allowing us to effectively anticipate and address his concerns. Second, we know how to effectively use today's increasingly diverse and complicated capital markets. In the equity placement area, we offer clients the resources of our mergers & acquisitions and general business brokerage areas, bringing us into regular contact with individuals and groups interested in equity investments.

     As a firm, our philosophy is to design and establish the optimal capital structure for the company while maintaining control of the company for our client, the business owner. We prefer to fill capital needs through debt when possible, thus preserving ownership. There are situations where equity is clearly called for, of course, and we are equipped for those needs, as well. But the effective preparation and presentation of a funding request can often increase the viability of the debt package enough to decrease or eliminate the need for such equity funding.