Governance & Finance

  • Get Business Funding Without a Bank's Blessing

    Capital is the blood of business. Without business funding, efforts are anemic. Growth, particularly for mid-sized companies trying to reach their next level, requires a good flow. Unfortunately, these companies face a challenge because traditional lending has yet to return to pre-Great Recession levels. That is why executives must consider non-bank financing strategies.  Read More >
  • Non-bank Financing for Middle Market Firms

    While many forms of financial activity have bounced back from the 2008-09 financial crisis, bank lending to middle market companies remains constrained. A 2012 National Center for the Middle Market (NCMM) survey found that 54 percent of middle market companies said one of their key challenges was gaining access to financing. And as banks face tightening regulations, from Dodd-Frank to Basel III, prospects for opening the lending spigots seem limited. As a result middle market companies need to pay close attention to the availability of financing available from non-bank sources. There are, in fact, a substantial number of institutions that provide funds to middle market companies.  Read More >
  • Rethinking Competitive Advantage: Why Mid-Sized Businesses may have the Advantage

    By Jay Anand
    Competitive advantage is the basis of the superior performance of a firm relative to its competitors. Over the last twenty years or so, the most popular explanation of competitive advantage has been based on the notion that the firm possesses something special in the form of superior resources and capabilities. In other words, firms that possess superior resources and capabilities would have a competitive advantage over their rivals in a given market, and hence they would show extraordinary profits and performance. Fellows of the NCMM, Anand and Lu, challenge this simplistic notion on the grounds that it is difficult to know which firms actually possess superior resources and capabilities until after the evidence of competitive advantage and superior performance is already in.  Read More >
  • A New Case for Acquisitions: Target Firms that Benefit from Financial Synergy

    Middle market interest in mergers and acquisitions is stronger than in recent years, with close to 40% of mid-sized companies at least open to - if not actively seeking - suitors. But, which target to go after? Frequently, the recommendation is to pair up with a target such that the combination will produce operational synergies, whether it is the elimination of redundant costs or new growth through the pooling of their joint capabilities. But, what about financial synergy? Could not a well-endowed acquirer benefit a resource-constrained target, which might otherwise pass on profitable investments? Helping the target to fund these profitable investments could create value for the mutual benefit of the acquirer and target. Therein lies a new recommendation for seeking a target, particularly in the days ahead when surely the Fed's stimulus will end and capital will be harder to obtain.  Read More >

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