Effective Capital Structure For Contractors
Corporate attorney David Cole joined "Off the Shelf," a Federal News Network podcast, to discuss how government contractors should think about their capital structures. Mr. Cole addresses the major inflection points along the life cycle of a government contractor and how decisions affecting capital structure can promote growth. He explains the stages a government contractor goes through along the path from inception to exit of the market and the corresponding considerations regarding capital structures along the timeline. He also addresses early stage financing, finding the right mix of equity and debt, and planning for an exit which could be a sale, merger or an IPO, for example. Lastly, Mr. Cole explains the nexus between capital structures and all the stakeholders who hold an interest in a firm and why that structure must balance interests to enhance growth opportunities.