Most operators in today’s textile services market must focus on: 1) optimizing their capital structure, given the low interest rate environment since the financial crisis; 2) long-term growth objectives; and 3) their risk/reward profile.
 
The best capital structure maximizes the business value for its equity stakeholders, but also offers a balance between the ideal debt-to-equity ratio, while minimizing the firm’s cost of capital. In theory, debt financing generally offers the lowest cost of capital due to its tax deductibility and higher lien position on assets. However, it’s rarely the optimal structure, since a company’s risk generally rises ...