At Kessler Capital Consulting, we help American businesses develop equipment financing strategies that work for financial, cash flow and taxation consideration when they acquire equipment of all types.

Low monthly payments and minimal up front investments, coupled with our long-term relationship philosophy, make choosing our lending sources  a sound decision. With their highly evolved programs, proven effective over years of service, you can acquire any equipment easily with a financial product that makes sense for your unique needs.  Over the years, they have helped thousands of companies, large and small, capitalize on a vast range of business-building opportunities. With their creative solutions, competitive rates, flexible payment programs and equipment-specific end-of-term options, they can do the same for you. Their products can help you solve even the most complicated financing transactions because they can be specially tailored to your industry.

Kessler Capital represents companies with Competitive Rates on Equipment Leases & Loans written from $5,000 to $50MM of equipment cost by:

• Commercial Vehicle Financing
• Technology Equipment Financing & Leasing
• Oil & Gas Equipment
• Geothermal / Water Equipment
• Accounts Receivable Lending–$5 K to $30 K, no personal guarantees, no minimum FICO, funding in 3-5 days, 95% advances
• Start ups, fast growing companies, distressed or bank turn downs are of interest
• Point-of-Purchase Programs for Manufacturers, Dealers & Distributors
• Varied Flexible Payment Plans
• All Types of Equipment
• International leasing is available for companies with a lending source with over $1 Billion funded in 20 years

From credit decisions to funding to administration of your agreement, our sources are organized to deliver quick responses and superior service, including help with terms and structuring. We want to make sure that products work to your advantage, building competitive power and profits – fast.

Contact:
Bruce Kessler, MBA/ChFc  /  bruceall@swbell.net
Kessler Capital Consulting

Tel: (913) 661-0301 or Mobile: (913)302-3127  Fax: (913) 661-0644

Uncomplicated Commercial Lending

Start Smarter…Grow Faster…Go Farther

Our programs will help grow your business!

At Kessler Consulting, we help American businesses develop equipment financing strategies that work for financial, cash flow and taxation consideration when they acquire equipment of all types.

Low monthly payments and minimal up front investments, coupled with our long-term relationship philosophy, make choosing SLS ( www.slsfinancial.com )  a sound decision. With their highly evolved programs, proven effective over years of service, you can acquire any equipment easily with a financial product that makes sense for your unique needs.

Over the years, they have helped thousands of companies, large and small, capitalize on a vast range of business-building opportunities. With their creative solutions, competitive rates, flexible payment programs and equipment-specific end-of-term options, they can do the same for you. Their products can help you solve even the most complicated financing transactions because they can be specially tailored to your industry.

Kessler Capital offers Competitive Rates on Equipment Leases & Loans written from $10,000 to $500,000 of equipment cost by:

• Commercial Vehicle Financing
• Technology Equipment Financing & Leasing
• Accounts Receivable Lending
• Point-of-Purchase Programs for Manufacturers, Dealers & Distributors
• Varied Flexible Payment Plans
• All Types of Equipment

From credit decisions to funding to administration of your agreement with SLS, they are organized to deliver quick responses and superior service, including help with terms and structuring. We want to make sure that products work to your advantage, building competitive power and profits – fast.
Let us help you grow your business!

Kessler Capital Consulting

Tel: (913) 661-0301    Fax: (913) 661-0644
Contact: 
Bruce Kessler, MBA/ChFc  /  bruceall@swbell.net
Uncomplicated Commercial Lending

• Oil/Gas/Pipeline Production finance -MAIN FOCUS
• Lines Of Credit ( Asset Based Lending/Factoring )
• Equipment Leasing for Established contractors with excellent credit
• Mezzanine/Subordinated Debt
• M & A -Buyers seeking wireline/well service/production companies
• Equity for oil drilling projects in the mid-continent area

KESSLER CAPITAL, CONSULTING
11701 Wedd, Suite #4
Overland Park, KS. 66210
Phone: 913-661-0301or 913-302-3127 Fax: 913-661-0644

Mr. Bruce Kessler, MBA/CHFC
E
email: BruceAll@SWBell.net

In many cases the company will already be a private company, but if it is public then the management will take it private.

Some concerns about management buyouts are that the asymmetric information possessed by management may offer them unfair advantage relative to current owners. The impending possibility of an MBO may lead to principal-agent problems, moral hazard, and perhaps even the subtle downward manipulation of the stock price prior to sale via adverse information disclosure – including accelerated and aggressive loss recognition, public launching of questionable projects and adverse earning surprises. Naturally, such corporate governance concerns also exist whenever current senior management is able to benefit personally from the sale of their company or its assets. This would include, for example, large parting bonuses for CEOs after a takeover or management buyout.
Since corporate valuation is often subject to considerable uncertainty and ambiguity, and since it can be heavily influenced by asymmetric or inside information, some question the validity of MBOs and consider them to potentially represent a form of insider trading.

The mere possibility of an MBO or a substantial parting bonus on sale may create perverse incentives that can reduce the efficiency of a wide range of firms – even if they remain as public companies. This represents a substantial potential negative externality.

The Purpose of an MBO

The purpose of such a buyout from the managers’ point of view may be to save their jobs, either if the business has been scheduled for closure or if an outside purchaser would bring in its own management team. They may also want to maximize the financial benefits they receive from the success they bring to the company by taking the profits for themselves. This is often a way to ward off aggressive buyers.

Financing a Management Buyout

Debt Financing

The management of a company will not usually have the money available to buy the company outright themselves. They would first seek to borrow from a bank, provided the bank was willing to accept the risk. Management buyouts are frequently seen as too risky for a bank to finance the purchase through a loan. Management teams are typically asked to invest an amount of capital that is significant to them personally, depending on the funding source/banks determination of the personal wealth of the management team. The bank then loans the company the remaining portion of the amount paid to the owner. Companies that proactively shop aggressive funding sources should qualify for total debt financing of at least four times (4X) cash flow.

Private Equity Financing

If a bank is unwilling to lend, the management will commonly look to private equity investors to fund the majority of buyout. A high proportion of management buyouts are financed in this way. The private equity investors will invest money in return for a proportion of the shares in the company, though they may also grant a loan to the management. The exact financial structuring will depend on the backer’s desire to balance the risk with its return, with debt being less risky but less profitable than capital investment.

Although the management may not have resources to buy the company, private equity houses will require that the managers each make as large an investment as they can afford in order to ensure that the management are locked in by an overwhelming vested interest in the success of the company. It is common for the management to re-mortgage their houses in order to acquire a small percentage of the company.

Private equity backers are likely to have somewhat different goals to the management. They generally aim to maximise their return and make an exit after 3–5 years while minimizing risk to themselves, whereas the management rarely look beyond their careers at the company and will take a long-term view.

While certain aims do coincide – in particular the primary aim of profitable – certain tensions can arise. The backers will invariably impose the same warranties on the management in relation to the company that the sellers will have refused to give the management. This “warranty gap” means that the management will bear all the risk of any defects in the company that affects its value.

As a condition of their investment, the backers will also impose numerous terms on the management concerning the way that the company is run. The purpose is to ensure that the management run the company in a way that will maximise the returns during the term of the backers’ investment, whereas the management might have hoped to build the company for long-term gains. Though the two aims are not always incompatible, the management may feel restricted.

The European buyout market was worth €43.9bn in 2008, a 60 per cent fall on the €108.2bn of deals in 2007. The last time the buyout market was at this level was in 2001 when it reached just €34bn.

Seller Financing

In certain circumstances it may be possible for the management and the original owner of the company to agree a deal whereby the seller finances the buyout. The price paid at the time of sale will be nominal, with the real price being paid over the following years out of the profits of the company. The timescale for the payment is typically 3–7 years.

This represents a disadvantage for the selling party, which must wait to receive its money after it has lost control of the company. It is also dependent on the returned profits being increased significantly following the acquisition, in order for the deal to represent a gain to the seller in comparison to the situation pre-sale. This will usually only happen in very particular circumstances.

The vendor may nevertheless agree to vendor financing for tax reasons, as the consideration will be classified as capital gain rather than as income. It may also receive some other benefit such as a higher overall purchase price than would be obtained by a normal purchase.

The advantage for the management is that they do not need to become involved with private equity or a bank and will be left in control of the company once the consideration has been paid.

Kessler Capital Consulting

Tel: (913) 661-0301    Fax: (913) 661-0644
Contact:  Bruce Kessler, MBA/ChFc  /  bruceall@swbell.net
Uncomplicated Commercial Lending