BETHESDA, Md., July 19 /PRNewswire/ -- American Capital Strategies, Ltd. (Nasdaq:ACAS) today announced the rollout of www.AmericanCapitalOnline.com, the Financial Portal for middle market companies, as part of its Internet strategy aimed at leveraging its extensive existing network of web sites and its leading role in providing mezzanine debt and equity to middle market companies.
AmericanCapitalOnline.com offers owners and managers of middle market companies access to information and analysis previously available primarily through painstaking research and expensive intermediaries. The site enables users to learn about corporate finance, value their company, build financial models, develop financing memoranda, locate experienced financial professionals and, most critically, find sources of capital throughout the country that provide senior debt, subordinated debt and equity for growth, acquisitions, management buyouts, employee buyouts, liquidity and restructuring.
American Capital Chairman and CEO Malon Wilkus said, "Middle market finance is riddled with inefficiencies. Compared to more liquid financial markets for large companies, the middle market entrepreneur generally pays premium pricing for capital, waits an unconscionable period of time to raise needed funds, and pays an inordinate level of fees. Currently, capital markets do not focus sufficient attention on the needs of these middle market firms, yet these companies create 75% of all new jobs and comprise the fastest-growing business sector of our economy. Over the next five years, the Internet will rationalize this market, increasing efficiency, decreasing the cost of capital and fueling economic growth. By developing a portal dedicated to middle market finance, American Capital intends to use the Internet to take a leading role in rationalizing this market."
The site features American Capital's Automated Online Valuation, a tool that allows an owner or manager of a private company to conduct a valuation of their business. The Automated Online Valuation is a sophisticated valuation system that allows the user to conduct a discounted cash flow valuation, a public company comparable valuation or a combination of the two, on a confidential basis, via the Internet. Valuations can be saved, retrieved, edited and rerun with current market assumptions and comparable public company data. The valuation results are presented immediately in a series of detailed tables showing all assumptions, calculations and analysis used to conduct the valuation. While the results obtained from the Automated Online Valuation are not intended to replace the analysis performed by an independent valuation firm, the Automated Online Valuation provides a rigorous and extensive valuation
report.
The Automated Online Valuation is anticipated to be used by owners and managers of middle market companies periodically to conduct valuations of their company to quantify the impact on value of changes in the operating performance of their company and macroeconomic conditions. "This is the first time a comprehensive business valuation system is available at no cost providing similar results as valuations costing many thousands of dollars and requiring weeks to produce," said John Erickson, Chief Financial Officer of American Capital.
American Capital Chief Operating Officer Adam Blumenthal commented, "Today, a middle market entrepreneur who wants to know the cost of capital often must rely on anecdotal evidence. To value his or her company, they must engage a valuation firm. To raise financing, a dozen entities may have to build a model and conduct due diligence. AmericanCapitalOnline.com is a one-stop source for middle market finance. It will provide direct information on cost of capital; its expert systems will value the company and model financial structures in real time and at no cost, and provide access to our online database to find the best professionals and sources of capital to complete the transaction. AmericanCapitalOnline.com represents the beginning of a revolution in middle market finance."
American Capital is a buyout and specialty finance company with capital resources exceeding $275 million. American Capital invests in senior debt, subordinated debt and equity in middle market companies in need of capital for growth, acquisitions, ESOP buyouts, management buyouts, liquidity and restructurings.
In addition to AmericanCapitalOnline.com, American Capital operates six websites including American-Capital.com, Finance-Company.com, Buyouts.com, ESOPs.com, CorporateValuation.com and its shareholder site, ACASOnline.com.
Companies interested in learning more about American Capital and its unique and flexible financing should contact John Hoffmire, Vice President of Sales and Marketing, at (800) 248-9340 or John.Hoffmire@American-Capital.com or visit its website at American-Capital.com or its shareholder site at ACASOnline.com.
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements regarding expected results of American Capital Strategies are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
