Recruiter's Glossary

Examples: Succession Planning • Value Creation • Forecasting

Capital Structure

Term from Business Advisory industry explained for recruiters

Capital Structure refers to how a company organizes its funding between different sources like loans, stocks, and savings. It's like planning how to pay for a house using a mix of savings, mortgage, and perhaps help from family. Business advisors help companies figure out the best mix of these funding sources to keep the company financially healthy and growing. When you see this term on a resume, it usually means the person has experience helping companies make smart decisions about their funding sources and managing their debt versus equity balance.

Examples in Resumes

Advised multiple Fortune 500 companies on Capital Structure optimization, resulting in 20% cost savings

Led Capital Structure analysis for merger and acquisition deals worth over $100M

Developed Capital Structure recommendations that helped startups secure optimal financing

Typical job title: "Financial Advisors"

Also try searching for:

Corporate Finance Advisor Financial Analyst Investment Banker Business Advisory Consultant Financial Consultant Capital Markets Analyst Corporate Strategy Consultant

Where to Find Financial Advisors

Professional Networks

Job Boards

Industry Resources

Example Interview Questions

Senior Level Questions

Q: How would you help a company decide between issuing new shares or taking on debt?

Expected Answer: Should explain in simple terms how they weigh factors like current market conditions, company's financial health, tax benefits, and impact on company control. Should mention real examples from their experience.

Q: Can you describe a challenging capital structure situation you've handled?

Expected Answer: Should provide a clear example of a complex financing decision they've guided, explaining the problem, their analysis process, and the successful outcome in business-friendly terms.

Mid Level Questions

Q: What factors do you consider when analyzing a company's capital structure?

Expected Answer: Should mention key elements like company size, industry standards, growth plans, and risk levels, explaining each in plain language with practical examples.

Q: How do you explain capital structure recommendations to clients?

Expected Answer: Should demonstrate ability to communicate complex financial concepts in simple terms and show how they build clear, convincing presentations for clients.

Junior Level Questions

Q: What are the basic components of capital structure?

Expected Answer: Should be able to explain the difference between debt and equity in simple terms, and describe basic advantages and disadvantages of each.

Q: How does capital structure affect a company's financial health?

Expected Answer: Should explain basic concepts like how different funding sources impact company costs, flexibility, and risk in straightforward terms.