Independent Corporate Finance Advisory Specialists

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In finance,

everything that is agreeable is unsound and

everything that is sound is disagreeable.

~ Winston Churchill


by Wassily Kandinsky

Gallium Corporate Finance provides advice and assistance in raising debt and/or equity capital and/or restructuring the current capital structure.

We identify your funding needs, and then match the most effective financial solution with the best funders for your particular circumstance.

Price is not the only consideration when negotiating funding. Flexibility and less restrictive covenants are just two factors that can have greater value to a borrower than simply the lowest rates. We will advise you on obtaining the optimum financing package.

We focus solely on the needs of our clients and are completely independent without any ties to any financial institution or other business.

Businesses need financing structures that will accommodate current and future growth.

Financing decisions can be complex and have far reaching implications for your business. Gallium Corporate Finance will analyze your current capital structure and assess the future funding requirements that will arise due to growth and/or projects. We will then recommend changes to provide your business with the financial flexibility to meet those funding needs. In doing so, we address the trade-offs between the various types of funding, e.g. debt versus equity.

Our goal is to achieve an optimum capital structure which may include:

  • Equity
  • Mezzanine / subordinated debt
  • Debt and/or Specialized debt such as Asset Based Loans
  • Leasing and similar structured products.
  • Project finance
  • Tax based products
  • Trade finance

We will then source the financing on the most competitive terms.

In an ideal world, businesses would receive payment for their goods and services before they had to pay for the related costs.

However, the real world does not always work that way and most businesses need to finance their working capital requirements.

Gallium Corporate Finance will help you minimize your working capital deficiency and advise you on funding options that provide flexibility and cost competitiveness.

Financing options include:

  • Revolving Credit Facilities
  • Asset Based Loan Facilities
  • Factoring
  • Trade Finance

Conventional wisdom suggests that it is prudent to finance assets with the appropriate debt structure.

While there are anomalies, it is sound risk management to finance long-term assets (such as land, buildings, equipment and similar fixed assets)with long term debt and short term assets (such as receivables and inventory) with short term debt.

There are a variety of financial products available to enable a business to term out its debt structure, including some specialty structures which have characteristics of debt and equity, e.g. subordinated debt (also known as mezzanine debt).

Gallium Corporate Finance will advise you on the options for the most competitive debt products to suit your company's profile.

The structure of a project financing usually requires customizing to reflect the risks, parameters, parties and objectives of the project.

Structures are often complex, being designed to achieve risk allocation between the various parties to the project and the lender(s), and to provide acceptable security to the lender(s). It is often possible and indeed desirable to be able to structure the assets and liabilities on an "off-balance sheet" basis. Due to the complexity of structuring, this type of financing is generally more expensive in terms of higher margins, lending fees, monitoring expenses, and professional fees. Terms are based on the projected cash flows but can be as long as 15+ years.

Gallium Corporate Finance will advise you on the most competitive and reliable project funders suited to your project. The optimum funding layers may include:.

  • Sponsor Equity
  • Additional Equity - Private or Public
  • Mezzanine / Subordinated Debt
  • Senior Debt - Bank Term Loans and/or Bonds
  • Leasing and/or Asset Based Loans
  • Working Capital Credit Lines
  • Risk Management Products - Currency & Interest Rate Swaps

Leasing is a means of acquiring the use of an asset without having ownership.

Leasing is an alternative to debt and is among the most frequently employed and rapidly growing sources of finance. Using leases, businesses can obtain the use of producing assets without having to raise the cost of the asset in advance. Depending upon the nature of the lease and the underlying asset the lease may be treated for accounting and tax purposes as either an operating lease or a capital lease.

In an operating lease, the lessor (or owner) transfers only the right to use the property to the lessee. At the end of the lease period, the lessee returns the property to the lessor. Since the lessee does not assume the risk of ownership, the lease expense is treated as an operating expense in the income statement and the lease does not affect the balance sheet.

In a capital lease, the lessee assumes most of the risks and benefits of ownership. Consequently, the lease, when signed, is recorded in the capital fund and recognized both as an asset and as a liability on the statement of financial position. It has similar characteristics as a term loan and a conditional sales contract.

In certain situations (and generally multi-million dollar transactions), synthetic leases may provide off-balance sheet operating lease treatment accounting purposes, while allowing the client to retain tax ownership of the underlying asset(s). Other benefits provided by synthetic leases may include improved ROA, ROE and leverage ratios.

Gallium Corporate Finance will advise you on options for leasing the assets you wish to acquire on the most competitive terms.

Equity is a critical capital component for most businesses, be they in a start-up or growth mode.

It is vital to obtain the optimum balance between equity and debt in order to achieve appropriate leverage and cost efficiencies.

Over the years we have developed a network of Private Equity firms, Angels, Family Offices, and institutions, both domestically and internationally. We understand their various criteria and investment philosophies and as such are able to approach those most suited for our client's particular circumstances.