The business world is changing and so must the way businesses approach corporate finance. Today, entrepreneurship requires access to capital. Many entrepreneurs first think of bank loans, but this is the least likely source of capital for their business. Instead, entrepreneurs must find creative ways to raise money. “Spank the Bank” by Karlene Sinclair-Robinson, renowned business finance author, is a great example of creative financing. Using unconventional sources of capital can help a company avoid the risks of defaulting on its loan, while allowing it to grow into a success.
David Ross is a former senior corporate finance executive at Citigroup with extensive experience in strategic transactions. He has particular expertise in the healthcare, TMT, and consumer sectors. He trained at KPMG in London and co-founded Eastwest Partners, where he merged advisory activities with corporate finance. His hobbies include playing most sports passively and chauffeuring his children around town. The goal of creative corporate finance is to create value for all parties involved.
The creative corporate finance used by Diamond Energy Partners can help the company simultaneously spin off its oil and gas assets in the Gulf of Mexico, repurchase shares, and increase dividends. In addition, creative corporate finance allows Diamond Energy Partners to pass along tax benefits to its stockholders without incurring significant debt. Moreover, Creative Business Finance has extensive data on 3M+ companies and can offer full company profile access. If you’re looking for a career in creative Corporate Finance, then contact us.
Creative Corporate Finance is necessary for the growth of a business. A successful business navigates the capital markets, innovates at the speed of light, and seeks creative financing for growth and expansion. It takes time for a new business to become profitable, and creative corporate finance can help them get there. In addition, it can provide a much-needed financial boost, as well as prepare them for inquiries from other people who are interested in investing in their company.
Creative thinking is not an easy task. However, the most creative organizations have a history of failures. Because creativity can lead to new ideas, the finance leader can add some discipline to the creative process. After all, it’s natural for a business to seek innovative solutions, and finance leaders must balance a creative portfolio with risks. This process will ultimately improve the business and provide greater returns than usual. If a CFO can get their finance team to embrace the creative mindset, he can be a powerful asset.
While it is important to embrace the forces of change, companies that are unable to adapt can become a deadweight to the capital markets. This is because most management philosophies assume a stable future and prevent them from engaging in the creative destruction process. To become successful, corporations must embrace these forces. Incorporated creativity is crucial to the growth of their business. Incorporated creativity is vital to survive in today’s capital markets. So, how do we foster creativity in our corporate finance?