Advice for CEOs

Middle market private equity firms take different approaches to building financial management capability at their portfolio companies. After closing the deal for investment in a company, they often choose to keep the financial manager in place, whether he or she is titled CFO, controller or something else.

This article was previously published on the All Business section of the Forbes website on August 12, 2013. Michael Evans is a regular contributor offering small business advice to All Business followers. For more great small business articles visit AllBusiness.com, AllBusiness Experts and subscribe to Newport's blog.

Just as a seller needs to make their home shine to get it ready for an open house, companies seeking financing need to present as attractive a face to the market as possible. Failing to put your best foot forward by pursuing a half-hearted approach to arranging credit could easily result in disappointing outcomes. Growth requires financing: working capital, permanent capital and possibly acquisition financing. While finance companies and other asset-based lenders fill needed roles in the early stages of corporate development, their loan pricing, terms and resulting constraints on operating flexibility are typically less advantageous to the borrower than bank financing. For an emerging growth company the ultimate goal should be to obtain unsecured credit facilities. Putting your best foot forward is the first step.