Ask an Orange County Corporate Attorney About Corporate Capital Structure

August 28, 2017

Whether your company is a start-up or a well-established multi-national corporation, chances are good that the executives within the organization spend a great deal of time wondering whether or not their capital structure is appropriate. An experienced Orange County corporate attorney like the practitioners at Fitzgerald Yap Kreditor can attest that one of the most frequently asked questions that they encounter is, “How do I structure my company’s capitalization?”

It’s a fair question, and a vital one. Unfortunately, it’s rarely easy to answer. Just as troubling, it’s a question that routinely comes up for CFOs and other executives who are reviewing the company balance sheets. As they look at the report, they wonder whether or not it is feasible to finance a new project by drawing on the company’s equity or by adding debt. The choice they make can have far-reaching implications. The right corporate capital structure can entice new investors or help customers decide to choose one company over the products and services of a competitor.

The corporate capital structure that your company chooses may affect your tax rates or improve earnings per share. Even more importantly, a poor capital structure may limit your strategic options in the future, leading to a business venture that ultimately fails.

Building a sound capital structure isn’t just a one-time task. Instead, it is an ongoing project that may need constant tweaks and changes. That’s especially true when a new product launch is on the horizon or an old product is reaching the end of its profitable lifetime. A corporate capital structure can similarly be affected by the economy as a whole and the financial outlook for a specific industrial sector. Clearly, there is a continuing need for guidance and advice when it comes to crafting a reliable approach to corporate capital structure.

Talk to an Orange County corporate attorney about the many methods that are available for building a strong and flexible corporate capital structure. The skilled practitioners at Fitzgerald Yap Kreditor are available to discuss your options whether you are the owner of a start-up or on the executive board of a multi-national corporation. Call them at (949) 788-8900 to schedule a consultation today.