Capital Insights

Connect Owner Independence With the Capital and Ownership Plan

By Don McClain

A financing request should reflect who will actually run the business. An existing owner may remain the operating leader; an acquisition buyer may need to replace the seller, transfer relationships and fund a transition. Don McClain's owner-dependence article explains why those cases need separate cash-flow assumptions. Support earnings adjustments, include management costs and account for existing and proposed obligations. Alianza Partners leads business-ownership discussions, while Medro Advisors coordinates related capital and property questions through the appropriate specialists. Begin with the objective, owner's role and timing. A valuation estimate does not establish debt capacity or financing approval.