Equity Financing

Private Equity
FMC Financial Services, Inc. (FMC) has developed several preferred investor sources, many of which are previous owners of companies that FMC assisted in their exit strategy. The typical investment is made in amounts ranging from $500,000 to $6,000,000 to private companies with revenues of $5 to $50 million. We look for companies that seek growth capital to take advantage of market opportunities or to meet the capital needs created by:

  • buyout a retiring partner,
  • acquire a competitor,
  • capital to expand market share

We have the capacity to do structured financing consisting of the placement of preferred debt and to raise investment capital through the preparation of private placement memorandum.  In addition, we have the ability to guide a client through the IPO or initial public offering of their stock on the open markets. Our preferred markets are health care projects, medical office buildings, senior living projects and specialty health care such as memory care, Alzheimer’s, and adult psychiatric programs. Further, FMC can guide a client through the raise of equity and debt placement in light manufacturing, car washes, marinas, and apartment projects.

The investment bankers of FMC can also assist with government contracting through our relationships with Alaska Native Corporations and Native American tribes of the lower forty eight states. These take the form of teaming agreements, equity investments in your businesss or the out sale of your business where we act as financial advisor to your business.

To view a list of representative transactions the FMC investment bankers have participated in, please visit our Tombstones page.

Small Business Investment Company
In 1958 Congress created The Small Business Investment Company (SBIC) program which are licensed by the Small Business Administration, and are privately owned and managed investment firms. They provide venture capital to small independent businesses, both new and already established. All SBICs are profit-motivated businesses and not only fund loans but inject equity. Loans may have a maturity of no more than 20 years and can be structured as subordinated debt with detachable warrants that can be converted into stock at the appropriate time. SBICs may not invest in the following: other SBICs, finance and investment companies or finance-type leasing companies, unimproved real estate, companies with less than one-half of their assets and operations in the United States, passive or casual businesses (those not engaged in a regular and continuous business operation), or companies which will use the proceeds to acquire farm land. An SBIC is not permitted to control, either directly or indirectly, any small business on a permanent basis. The cost of money on SBIC loans is regulated by the SBA and is governed by applicable state regulations, or by SBA regulations. In general, investment funds used to purchase securities must go directly to the small business concern issuing the securities.

Minority Enterprise Small Business Investment Company (MESBIC)
They function identically as SBICs but only customized programs for minority owned businesses.