How Founders Use Debt to Fund Growth and Plan Their Exit

Emily brings her extensive expertise in capital markets and private credit—especially in the CPG sector—to unpack some of the most nuanced questions founders face: How do you decide when debt is a strategic tool versus a dangerous liability? What signals does debt send to potential acquirers? And how can you leverage it to maximize valuation without risking the fundamentals of your business?

Author

Aaron Alpeter
October 15, 2025

Emily Reeves, VP of Capital Solutions at Bridge, offers a masterclass on using debt intelligently as you scale or prepare for an exit. If you’re eyeing a liquidity event—or just want to make smarter financial moves—this episode is packed with actionable advice you won’t want to miss.

Key Takeaways from the Conversation:

1. Debt Isn’t a Dirty Word—It’s a Smart Tool (If You Use It Right) Emily challenges the stigma around debt. She explains, “Lack of debt or debt on the balance sheet isn't necessarily a good or a bad thing…sometimes it's at the cost of dilution.” Smart debt preserves equity, supports growth, and prepares you for a stronger exit.

2. Responsible Debt Starts with ‘Sources and Uses’ Before you say yes to those tempting lending offers, ask yourself: What is the debt for? Good sources include equipment, inventory, and receivables; good uses go toward revenue-generating assets or key hires—not just covering payroll.

3. Know Your Numbers (Like, Really Know Them) Being a founder isn’t just about vision. Emily and Aaron stress that top operators can “speak to their numbers and make informed business decisions”—from ad spend ROI to customer acquisition costs to cash flow projections.

4. Don’t Just Chase Growth—Build with Foresight Smart operators avoid taking on too much debt or overbuilding capacity. Emily shares: “You can put anything in a spreadsheet… but you have to be able to step back and ask: do I really need this, or am I outpacing what I need?”

5. Debt and Exits: Preserve Equity, Show Sophistication If you’re looking to exit in the next couple years, using debt wisely can mean more money stays with you—if it’s been invested in building a stable, sustainable operation. Investors look for founders with a command of their numbers and a disciplined approach to growth.

6. The Lender’s Lens: Prepare for Headwinds Lenders and acquirers look beyond the surface—at how founders react to challenges, adapt to market changes, and keep operations nimble. As Emily puts it: “Quick-thinking, adaptable founders are what make a business truly resilient.”

One Simple Moat:
Emily’s favorite? A rainy day fund. “Individually we should all have one. I also think businesses should. Sometimes it's every dollar in, every dollar spent, but having a cash reserve is as important for a business as for an individual.”

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