Mahasico Business

Financing your business could be most likely difficult especially during these times of economic uncertainty. Your possible sources of funding can either be internal or external. If you are starting a business, you will most likely use internal funds such as personal savings to finance your company. But if you are already in the expansion stage, you should be tapping more external financing in the form of debt or equity.

Private equities play significant roles in the financial markets, own portfolio companies that employ large numbers of people, and invest on behalf of public and private pension plans that have millions of individual beneficiaries. When borrowing money or raising funds from investors, you need to consider the management participation and reliability of the funds provider. Kohlberg Kravis Roberts & Co. (KKR), whose co-CEO and Co-Chairman is Henry Kravis, is a private equity firm that pioneered the development of the management buyout. The company’s investments have had a positive impact on its portfolio companies, stakeholders, and the economies in which it operates. A cofounder of Kohlberg Kravis Roberts & Co. (KKR) in 1976, Henry Kravis helped to devise the leveraged buyout, or LBO. The strategy enabled the company to enter partnerships with companies by working with management to acquire blocks of stock through the assumption of debt. Mr. Henry Kravis has also served on numerous corporate boards, including RJR Nabisco, Safeway, Gillette, Borden, and Owens-Illinois. He founded and heads the New York City Investment Fund, designed to create jobs and help small inner-city businesses in New York City.

At whatever stage of growth you are in as an entrepreneur, it is very important to explore an effective source of capital. You need to choose the right mix of debt and equity financing at the least cost that can provide you the most effective way in managing your business.