Your balance sheet is more than a QuickBooks report
Talking about capital structure doesn’t need to be an intellect measuring contest. Normally an opportunity for MBA’s to sit around talking about the nuances of equity vs. debt issuance - the real crux of the discussion has implications for small businesses and investors alike.
The combination of debt and equity held on a balance sheet is important. It’s important from a risk perspective - lenders and shareholders view the riskiness of a firm based on liquidity benchmarks and existing obligations. It’s also important from a cost of capital perspective - a misaligned capital structure may impact the rate at which you could secure future funding - impacting growth opportunities.
A recapitalization strategy helps to optimize an organization's balance sheet and maximize their potential to scale. From debt placement strategies to equity sales to sale-leasebacks - it’s time to look at your balance sheet like a stakeholder would and take ownership of your organizational growth.