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What is Growth Equity? Definition of growth equity

Definition of growth equityGrowth Equity is a form of capital used to fund accelerated growth of a company. Generally it is structured as preferred stock with minority equity ownership. It has similarities to venture capital, but is generally provided to middle market sized companies that are undergoing high rates of organic growth and need external capital to scale up to meet market demand. Most purveyors of growth equity have evolved from either private equity funds or venture capital funds.
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An analysis on the growth of the mezzanine debt market

An analysis on the growth of the mezzanine debt marketThe mezzanine market, presently a multi-billion dollar market, with investments from professional investors, insurance companies, pension funds, and specific mezzanine investment funds has been around for 30 years. Apart from being leveraged by large companies, mezzanine capital for smaller and mid-sized investments in the $2-$15 million range is witnessing a new phase of growth………………………………Read More

Benefits offered by mezzanine debt for a company/borrower

Benefits offered by mezzanine debt for a company/borrowerCompanies, especially small and medium sized businesses, who wish to acquire a viable financing option for growth and expansion, can opt for mezzanine financing. Sometimes referred to as subordinated debt or junior debt, mezzanine financing is a great option for those mid market companies seeking acquisition financing, growth capital financing, recapitalization financing or refinancing……………………………..Read More

How mezzanine debt can be used to fill a capital gap

How mezzanine debt can be used to fill a capital gapA capital gap is an absence of necessary funds to fund operations, growth or acquisitions. It occurs when companies go through transitional phases that either stress them financially or present opportunity for growth. Capital gaps can be transitory or permanent in nature. Acquisition driven capital gaps are one time in nature and can be easily filled through……………………………Read More

Why mezzanine funds are considered risk lenders

Why mezzanine funds are considered risk lendersWhen it comes to debt, mezzanine debt ranks somewhere between equity and senior debt. Borrowers often use it as a final step in the borrowing process after they know what senior debt and equity they have available. This causes mezzanine debt to take a flexible form……………………………Read More

Advantages of mezzanine layer financing

Advantages of mezzanine layer financingThere are several advantages of mezzanine layer financing. Firstly, the mezzanine layer is positioned below the bank loan at a higher risk layer of capital. It is not secured and its ultimate repayment is subject to the success of the project being funded. This mezzanine layer functions as venture capital to advance the strategic growth of the company………………………….Read More

What are the different types of major capital investments?

The different types of major capital investmentsMajor capital investments can be classified by type of industry. Historically, major capital investments were primarily equipment and machinery based projects. Over the past 20 years, as the United States has become more technology based, major capital investments now include product development, research & development and market development………………………..Read More

Mezzanine financing as an intermediate term bond

Mezzanine financing as an intermediate term bondAn intermediate term bond is a form of a long-term loan. From the perspective of the holder, it is a fixed income security with a maturity between 3-10 years. The holder gets a fixed payment of interest over a specified duration, from a company that has an acceptable credit rating. Most intermediate term bonds are for large capitalization companies, and are publicly traded on the bond market……………………….Read More

Mezzanine as a form of debt instrument

Mezzanine as a form of debt instrumentFor middle market companies, mezzanine financing is an efficient way to fund expansion and acquisitions. Mezzanine debt has a few important differences than other loans which makes it a unique debt instrument. Firstly, mezzanine is based on cash flow and future growth as opposed to assets. This makes it possible to advance a much larger loan than a bank can………………………Read More

Mezzanine debt as a bridge loan

Mezzanine debt as a bridge loanA bridge loan is a short-term loan, designed to facilitate a quick closing of a transaction. The term bridge loan is coined from the fact the loan is a transitional, not a long term solution for the company. It will get you from point A to point B but will generally not result in a long term solution. Often, capital is needed to fill a gap due to faster growth or acquisition………………………………………….Read More

Firming up your deal with mezzanine debt

Firming up your deal with mezzanine debtMezzanine debt is a lot like the muscles in your body. When the muscles in your body firm up, they become stronger and support you in whatever task you are completing, whether it be running a race or lifting something heavy. Mezzanine debt helps your company run the race and lift something heavy at the same time!…………………………………………Read More

Effects of Management Buyouts on Shareholders

Effects of Management Buyouts on ShareholdersA management buyout, or MBO, is a transaction where a company’s management team is acquiring a majority of the company. This buyout is attractive to managers because being an owner provides much greater prospective financial rewards rather than being an employee. Managers rarely have enough funds to buy the company on their own, so additional funds may have to be raised, typically by way of debt financing…………………………………………Read More

What are the risks to be aware of with mezzanine products?

The risks to be aware of with mezzanine productsMezzanine financing is defined as cash flow based loans that are highly customizable and best used in conjunction with mergers and acquisitions. Mezzanine lending products are driven by a Company’s EBITDA. A mezzanine financing opportunity arises when the banks can no longer stretch further into the capital structure to fund a deal. There are several risks to be aware of when receiving a mezzanine loan. Firstly, the company needs to ensure that its cash flow is strong enough to cover the debt service and the additional upside required with such a loan………………………………………..Read More

What is growth equity?

What is growth equity?Growth equity is when a company uses private equity capital to accelerate its growth and raise the valuation of the company. It is a widely used term in the finance world that refers to any form of capital used to facilitate the growth and expansion of a company. It can consist of a variety of capital forms in a variety of different structures. Its defining feature is the degree to which it is growth generative……………………………………….Read More

A look into growth equity and venture capital

Venture capital is a type of private equity capital, typically provided by outside investors, for financing new or growing businesses. Growth equity and venture capital can often overlap for businesses that have high levels or risk, but high levels of reward as well. Venture capital investments are generally high-risk investments but offer the potential………………………………………Read More

What is M&A Financing

M&A Financing describes various forms of capital that can be used independently or collaboratively, to effect a M&A transaction. Primary forms of M&A Financing include debt (loans) or equity (investor capital). Within each of these primary forms, there are a variety of different structures differentiated by term, pricing, position, and risk tolerance. The Goal of M&A financing is to fund an acquisition for a purchaser and also to provide the capital within a structure that is sensitive to the operating cash flow reality of the company………………………………………Read More

What is Growth Capital?

Growth Capital is a widely used term in the finance world and refers to any form of capital used to facilitate the growth or expansion of a company. Growth Capital is a functional name for financing that cultivates growth of the subject enterprise. It can consist of a variety of capital forms in a variety of different structures. Its defining feature is the degree to which it is growth generative……………………………………..Read More

What is an Acquisition Loan

An Acquisition loan describes a type of loan that is used by a purchaser to acquire a company. It encompasses a wide variety of loan structures, all of which are characterized by the functionality of the loan – that is to finance an acquisition. Acquisition loans can be used by companies as part of a leveraged buy-out. They can also be used by entrepreneurs seeking to close an acquisition. Acquisition loans can be provided by a bank, a non-bank finance company, or a mezzanine lender…………………………………….Read More

How much debt is too much before opting for mezzanine financing?

A mezzanine financing opportunity arises when the banks can no longer stretch further into the capital structure to fund a deal. The amount of debt that is too much before opting for mezzanine financing is often subjective, but it is usually determined by the bank’s credit standards and risk rating system. Banks like to keep their loans fully collateralized and their leverage multiples down. They also like to see a strong book equity level on the balance sheet……………………………………Read More

A Look into different types of Mezzanine Lenders

Whether you have a small deal or a large deal on your hands, mezzanine lenders should be your first option when looking for growth and acquisition capital. The middle market consists of many different types of lenders from local banking sources to government entities such as Small Business Investment Companies (SBICs), public entities such as Business Development Corporations (BDCs), and independent lenders. Depending on the size of the deal, Attract Capital will find the best fit for your next opportunity. The size of the deal dictates where you will find your capital provider…………………………………..Read More

Market Analysis for Mezzanine Funding

Mezzanine Funding is a market based completely of loans that are cash flow based. Mezzanine is benchmarked to a Company’s EBITDA and not to its level of collateral. A company that is looking to acquire mezzanine funding has the ability to generate enough cash flow to pay back the principal and interest on the loan over time. Mezzanine lenders focus on cash flow and factor in future cash flow growth when structuring their loans. ………………………………….Read More

Who are the players in a leverage buyout

When completing a leverage buyout, there are several key participants that are involved to accomplish the deal: the buyer, the seller, and the lender.
The Buyer: The buyer is the company that is acquiring the other business. The buyer must have strong cash flows and equity base that can handle the principal and interest cost that will come along with the capital provided. ………………………………….Read More

Risks of Leverage

There are numerous risks that come along with completing any deal in the business world. One right move and the margins can increase exponentially, while one wrong move and everything can come crashing down. It is important to be aware of the potential risks of a leverage buyout before deciding to pursue one. When a business completes a leverage buyout, it is acquiring another company using capital from an outside lender to successfully “leverage” the purchase the business. ………………………………….Read More

What is the purpose of a Leveraged Buyout

A leveraged buyout is a phrase coined to refer to the use of “leverage” or borrowed capital to buy out a business. The “buyer” completes the acquisition using funds from a lender, which are used to pay the “seller.” The purpose of a company completing a leverage buyout is for strategic or financial reasons, or a combination of the two. ………………………………….Read More

Different stages of a Leveraged Buyout

A leverage buyout (LBO) involves the acquisition of a company through outside capital from a lender. A typical LBO can be divided into four separate stages.

Stage 1: Finding the Business to be Acquired
It is simple to say that you want to complete an acquisition, but is much harder to find the one that fits best with your business. It is important to start off by evaluating your own financials and the potential risks that your balance sheet can withstand………………………………….Read More

What is distressed debt investing

Hedge funds often have the ability to produce a high rate of return on an investment very quickly, but they can also go into financial crises in that same amount of time. One type of investment that can produce such a diverse return is distressed debt. Distressed debt is defined as the debt of companies that have filed for bankruptcy or have a significant chance of filing for bankruptcy in the near future…………………………………Read More

Benefits of mezzanine debt for an investor

For a middle market business, mezzanine debt is often the easiest and safest way to fund a future transaction, whether it is an acquisition, buyout, refinancing of debt, or just for growth. Often, the loan is long-term with an 5 to 7 year maturity dates, which gives the company breathing room and a valuable transition time to invest in its future. A mezzanine loan is a deal between a company and a mezzanine lender…………………………………Read More

A look into traditional venture capital firms

Venture capital is a type of private equity capital. A venture capital investment is generally a high-risk investment, but it offers the potential for an above-average returns for the investor. Venture capital is typically provided by outside investors for financing new or growing businesses. A venture capitalist (VC) is a person who makes a venture capital investment. The initial,………………………………..Read More

A comparison of Mezzanine with other forms of financing

There are many different types of financing options for a business. Financing can be used to expand the business, merge or acquire another business, buyout a shareholder, and reliquify the balance sheet. The funding option that best fits your business will depend on several different factors:………………………………..Read More

How middle market companies form the backbone of any economy

A middle market firm is defined as a company that has revenues generally between $50 million and $1 billion. Middle market companies create about 40 percent of Gross Domestic Product and employ about 40 percent of America’s workforce. The 200,000 plus US-based mid-market companies are essential to America’s success………………………………..Read More

Benefits of involving advisors in buyouts

An advisor is very beneficial to any deal that you plan on making with your business in the future. The advisor is someone who has the most experience and understanding of what transactions have occurred in the field and the optimal way to complete another one for your specific business. The advisor’s expertise and extensive knowledge can be applied to your business goals, especially one that includes a buyout. ……………………………….Read More

Bridging a gap in buyout with Mezzanine Financing

Mezzanine financing can be used to fill a gap in a company’s financial structure between debt and equity or a gap in the supply of capital in the financial markets. This gives mezzanine financing extreme flexibility. As a result, mezzanine financing can be applied to many different basic transactions, including buyouts, growth and expansion, acquisitions, and recapitalizations. Mezzanine financing is very useful for a buyout……………………………….Read More

Bridging a gap in capital structure with Mezzanine Financing

A bridge takes a lot of materials and tons of stability to make the pieces fit together without falling apart. A weak bridge that undergoes too much pressure will fall into pieces and be useless. It is important that whatever bridge you build, that the structure has a strong foundation and sturdy supports. Mezzanine financing does……………………………….Read More

Mezzanine Financing as a middle market vehicle

A vehicle is something that can get you from point A to point B in a certain amount of time. Some vehicles move faster than others. Some vehicles have special features that others might not. That is what is great about Mezzanine Financing; it combines it all into one easy-to-use, safe, and dependable funding option………………………………Read More

A Guide Into Buying Your Own Business

Most business people would love to own his or her own business. For some people, the risk of buying an existing business is often lower than starting one from scratch. Although it may be less of a risk in some aspects, you must still perform due diligence to ensure you fully understand the business that you are about to purchase. ……………………………..Read More

Key Factors for A Successful Leveraged Buyout

LBO’s are vehicles for transferring corporate ownership where the buyer uses a combination of debt and equity to fund the purchase price. The structure is usually a mix of 25% equity and 75% debt, and the debt service of interest and principal payments on the loan are calibrated to be covered by the company’s level of free cash flow. LBO’s operate on the assumption that the company being acquired has a comfortable level of free cash flow that can be used to pay down the loan used to fund the acquisition. The key drivers of the success of. ……………………………..Read More

Key Steps to Finance a Management Buy Out

Management buy-outs are great for management teams, provided they are well planned, structured and implemented. Due to the inherent conflict of interest when the management team is the buyer of the company, it is important to have a team of advisors to ensure objectivity and arm’s length distance. Management buyouts are the best form of buyout in the market and are the most efficient way to align management and ownership. ……………………………..Read More

The Resurgence of LBO Buyouts

As the M&A market continues to grow, so does the interest in leverage buyouts. A leveraged buyout is when a company completes an acquisition by utilizing loans from outside sources or through a note held by the seller. Leverage buyouts build value by improving profitability and by accelerating innovation and new market expansion……………………………..Read More

Leveraged Loans In Demand Due to M&A Boom

Businesses are frustrated with their organic growth and have decided to expand their companies in other ways. Enterprises looking for faster growth are increasingly acquiring another companies. These are often friendly deals where they already know the other company. They can also be new deals where the acquiring company is entering a new region or a new market. With acquisitions comes the need for…………………………….Read More

A Look Into How Apple Staged Their Own Leveraged Buyout

Apple has engineered a share buyback that functions much like a leveraged buyout. It has used its cash to reduce its outstanding shares which, in turn, increased the share price. In “leveraging” its cash to repurchase the shares, Apple boosted the value of its outstanding shares. Over the past three years, Apple Inc.’s fully diluted share count has decreased 12% from over 6.637 billion…………………………….Read More

Private Equity Firms and Leveraged Buyouts

Leveraged buyout is a generic phrase to refer to the use of “leverage” to buy out a business. The acquirer may be a private equity firm, another company in the industry or current management. Leveraged buyouts occur for either strategic reasons, financial reasons or a combination of the two. It is a time tested way for companies to build corporate value over an accelerated time frame. Private equity firms are the originators of the leveraged buyout structure and have been successfully deploying it since the 1970’s. …………………………….Read More

Role of Leveraged Buyout in M&A

A leveraged buyout, or LBO, is a specialized deal structure where a company is acquired through utilization of outside financing, from either a bank or another lender. Leveraged buyouts originally began back in the 1970’s. They increased in frequency throughout the 1980’s as a result of the advent of the junk bond market. The LBO market has continued to expand across many segments…………………………….Read More

Management Buyouts On the Rise

Increasingly, organizations are expanding through buying other companies. There are numerous benefits to acquisitions including economies of scale, reduction of redundant costs and various customer and product synergies. Businesses have adopted M&A growth as a form of organic growth and want to complete more deals. For these acquisitive companies, there is a significant amount of capital available to them in the middle market…………………………….Read More

What The Latest Surge in M&A Deals Means to You

The latest surge in M&A deals has been going on for a while. Companies want to do more deals. Businesses are frustrated with their revenue growth and as a result are trying to grow in other ways. Owners and management teams figure that if you acquire another company, you can get some growth while also cutting some costs. The massive amount of capital sitting around has led to a win-win situation for all stakeholders. …………………………..Read More

How To Evaluate A Business For MBO

A common strategy when selling a business is a management buyout, or MBO. The term, management buyout, refers to when the management team of a company pools all of its resources to acquire a substantial share or all of the business that they work for. Often, the management team does not have the necessary funds available to complete the acquisition, so they must fund it through outside lenders or promissory notes…………………………..Read More

How to Avoid Pitfalls in Management Buyouts

For many managers, a management buyout, or MBO, is often their first opportunity at being an entrepreneur. There are several responsibilities and challenges that come alongside being an owner and having independent accountability. The security and comfort that was once there as a manager is no longer a part of the job. The benefits of a management buyout can outweigh the risks, as long as the deal is a good one and the price…………………………..Read More

Mezzanine Debt Can Help Meet Huge Capital Requirements In M&A

The term, M&A, suggests one of two principles: either the merging of two companies into a separate, new company, or, the buying of one company by another. A good portion of the funding that is needed to complete a merger or acquisition comes from an outside source. Mezzanine debt can be extremely helpful to fulfill the capital requirements needed in a merger and acquisition. …………………………..Read More

Alternate Lending Options To Help You In The Latest M&A Funding Frenzy

Mergers and acquisitions have really heated up recently. Many middle market companies are quickly turning to M&A to expand their company and increase their organic growth. This is a by-product of the low growth economy, where fast growth is not available for most mature, middle market companies. When finalizing a merger or acquisition, it can be challenging to complete a deal without the required financing…………………………..Read More

Mezzanine Debt To Help Fund A Management Buyout

A management buyout, or MBO, is a transaction where the management team acquires the assets or stock of the company from the owners. It is similar to a leveraged buyout in that, the management team does not have the necessary financing to purchase the company from the owners without third party financing. A management buyout is appealing to the management team because the rewards are greater as owners………………………….Read More

Is Your Company A Management Buyout Material

A management buyout, or MBO, is when a management team looks to acquire a substantial share or all of a business from the owners, but does not have the necessary funds available to make the acquisition…………………………Read More

M&A Funding on the Rise Due to Low Interest Rates

A good portion of the funding that is needed to complete a merger or acquisition comes from an outside source. Whether it be integrated debt, senior cash flow debt, asset-based financing, mezzanine debt, or unitranche debt, each of these sources of financing rely on one key factor: interest rates. Leverage buyouts and management…………………………Read More

How management buyouts help with change in ownership

A MBO, or management buyout, is when the purchaser does not have the availability of funding to acquire a company without resorting to some sort of loan. A management buyout is a particular method for acquiring a company where the managers of a company choose to purchase a substantial share or all of a business from its private owners. …………………………Read More

Important characteristics of a good LBO

At some point, a company may decide to perform a LBO. But, what is it and how can it help the company? First and foremost, a leveraged buyout is when one business uses a large portion of borrowed funds and a substantial portion of its own equity to acquire another business. The business making the acquisition makes the purchase using loans it gets from outside resources or agreements made between the buyer and seller as a promissory note to be paid over time………………………………….Read More

Key Ingredients for a Successful MBO Deal

A management buyout, or MBO, is when the purchaser does not have the necessary funds to be able to acquire a company it is interested in without obtaining some sort of loan. A MBO is a specialized form of an acquisition where the managers, specifically, of the company wish to secure a significant portion…………………………………Read More

Things to be considered in an LBO transaction

A leveraged buyout is when one company acquires another using both its own equity and a large portion of borrowed money. The “buyer” purchases a business, using funds provided from loans, to pay the “seller.” During a leveraged buyout, the company’s debt ratio is dependent on the level of risk of the buyout to be completed. If the “buyer” is a stable, secure company and it has strong cash flows, then the debt can go as high as 100% of the purchase price…………………………………Read More

How to finance an MBO

A management buyout, or MBO, is similar to a leverage buyout in that, the “buyer” does not have the necessary funds to be able to purchase the “sellers” company without obtaining some sort of loan. A MBO is a specialized form of an acquisition where the managers, specifically, of the company wish to attain a large portion or all of the company from their private owners………………………………..Read More

The 5 Key Stages Of Preparing for a Mezzanine Funding Raise

For middle market businesses, mezzanine funding is often the easiest and safest way to fund an acquisition. Mezzanine loans are large, flexible, and long term. Often, the loan is repaid at the end of five years which gives the company breathing room and a valuable transition period to invest in its future……………………………….Read More

Mezzanine Debt and Preferred Equity Program

Mezzanine debt and preferred equity fill a similar role in a capital structure but have important differences. A mezzanine debt and preferred equity program where either one or both forms of capital is employed can radically enhance a company’s access to capital and change the course of a company’s future………………………………Read More

Mezzanine Financing And Intercreditor Agreement

Mezzanine financing is usually positioned between a bank loan and a seller note or equity investor on a company’s balance sheet. The different types and amounts of capital that businesses and mezzanine lenders will agree upon is very negotiable and varies depending on several key factors……………………………..Read More

Middle Market Companies – Early Stages

Early stages of every company are all about progress. How can the company position itself to best meet the needs of the market that it is about to enter? Can the company grow and become successful based on the dynamics of the industry?…………………………….Read More

Your Ultimate Guide to Mezzanine Financing

A guide is more or less a map. It points you in the right direction and tells you the most opportune route to get to your destination. We all have some sort of navigation device, whether it is a physical map, a Garmin car navigator, or our smartphones. However, companies lack a true navigator to mezzanine financing…………………………….Read More

Considerations For Mezzanine Debt You Need Be Aware Of

Mezzanine debt is an advanced form of lending based on a company’s cash flow. It is can be overwhelmingly beneficial to a business because of its distinctive, multipurpose, and adaptable nature……………………………Read More

Importance of Mezzanine Capital In Funding A Business

Looking for some extra money to fund a merger or acquisition? In need of some refinancing of some previous loans? Or are you simply just looking for some extra dollars to keep your company secure and make room for future growth? Mezzanine capital is a great solution that is both safe and effective……………………………Read More

Mezzanine Debt For Middle Market Businesses

Mezzanine debt is an efficient way for a middle market company to facilitate liquidity that can be used to diversify wealth, pursue acquisitions, or fund organic growth. Mezzanine debt has elements of both subordinated debt and preferred equity, and is usually wedged between common equity and senior debt in a company’s capital structure…………………………..Read More

New Breed of Mezzanine Lenders fill the funding void

Most banks have decided on an asset only lending approach. This means they are unable to fund companies that lack assets. Most high quality companies are service or technology companies with strong margins and good cash flow………………………….Read More

Unitranches help in Mid-Market Deal Flow

Unitranche lending has become popular and is a new label for a traditional approachknown as a one stop lending. With a unitranche, a company receives all of its loans from one lender in one package. That is to say, you receive a line of credit, a senior term loan and a junior term loan all wrapped into one loan. …………………………Read More

Mezzanine Financing Offers More Liberal Standards than Banks

Mezzanine financing almost always provides more liberal standards than banks because it is a superior form of lending. Mezzanine loans are based on the cash flow value of a business which means they are more flexible and easier to work with than a bank loan. Most banks loans are based on a strict asset formula, where you can borrow a fixed percentage against asset value…………………………..Read More

A Changing Landscape in the Debt Market with Mezzanine Debt

Mezzanine debt is growing in the debt markets and becoming an increasingly important player. As banks tighten lending standards to asset based levels, term loans once provided by banks are no longer available. Term loans are essential building blocks for a corporate growth strategy as they facilitate long term investment………………………….Read More

Mezzanine Lending Poised for Greater Growth in the Debt Market

Mezzanine lending has come of age and is breaking out into the mainstream.As banks pull back and investors demand higher returns, companies are discovering that the mezzanine approach is the best of both worlds.Mezzanine has tremendous value due to business owners for two reasons.It is non-dilutive capital and guarantee free…………………………Read More

Why Prefunding Matters

Corporate growth involves managing multiple projects to coordinate resources against strategic opportunity.Often, realizing future growth assumptions relies on having the funding lined up at the right time to start the sequence of steps required for expansion.This is true with acquisitions, wherein funding is needed to close a deal, as well as in business development, where new staff is hired to push in a new direction………………………….Read More

The Case for Mezzanine Financing

The case for mezzanine financing is overwhelmingly positive due to its uniqueness, versatility and flexibility.Mezzanine financing is a progressive form of lending based on the single most important element to any business – its cash flow.Banks are largely no longer providing progressively structured loans to companies.They care only about limiting their downside and pleasing the regulators.Business is about growth, innovation and expansion………………………….Read More

Borrowers have more options with Mezzanine lending

Mezzanine lending gives borrowers more options than simple bank loans, due to the customization of structure and terms provided by these lenders.Mezzanine is not a one size fits all approach. Mezzanine lenders will approach a loan with a different set of criteria and risk assessment, allowing companies to secure flexible terms and liberal covenants………………………….Read More

Mezzanine Funding as an Alternative when bank funding isn’t sufficient

Companies need funding to grow at a rapid rate.Growing companies require more capital than they think they need, due to the paradox of growth.Growth creates the need to finance higher levels of working capital as well as higher levels of staffing and overhead. Often, business plans fall short in estimating the amount of capital needed, and the amount of financing a bank will give you…………………………Read More

What is Mezzanine Debt and How it Works

Mezzanine debt is a form of capital that allows companies to make acquisitions and grow faster.Unlike bank loans, mezzanine debt is based on the profitability and growth potential of a business.Where banks are only interested in making asset based loans, mezzanine lenders look to the company’s cash flow, growth potential and management character when making their lending decision…………………………Read More

What are Unsecured Business Loans

Unsecured business loans are loans that are not covered by a company’s collateral. This means that in the event of liquidation, the loan will likely be worthless. For this reason, unsecured business loans are often called air-ball loans in that there is nothing hard to collect upon. While unsecured business loans may indeed lack hard collateral, they can be healthy cash flow based loans………………………..Read More

Reviving Your Business through Unsecured Business Loans

Most businesses eventually become stagnant for a variety of reasons. They may run out of new markets, the may lack innovating strategies or management may decide to grow at a slower rate.One of the contributing factors to business stagnation is lack of capital or the perception of the difficulty of attracting new growth capital………………………..Read More

Financing Your Business Needs through Commercial Loans

Commercial loans are loans extended by a bank, finance company or other lender who focus on corporate finance. Commercial loans come in a variety of forms such as lines of credits, term loans and mezzanine loans.Whatever the form, they can all be used to finance your business needs. ……………………….Read More

A Look into the Comeback of Commercial Loans

Commercial loans are making a comeback through it may be hard to detect it.While bank commercials lending has decreased, non-bank lenders are picking of the slack. Commercial loans are lines of credit, term loans, SBA loans and mezzanine loans……………………….Read More

An A-Z Guide to Mezzanine Funding

Mezzanine funding is racing through the debt markets and becoming one of the top options for companies in the middle market. The first step to gaining funding from a mezzanine firm is to show strong historical financial performance.If your company has strong financial history and a compelling growth plan, you are a strong candidate for mezzanine financing……………………..Read More

Mezzanine Funding a Good Resource Tool for Middle Market Companies

Middle market companies are always looking for a way to increase competitively within their market. It is impossible to stay in an ever changing and growing market without development and enhancements to operations……………………..Read More

The Growing Options of Mezzanine Financing

For companies in the middle market, mezzanine finance is the go to option to receive financing for your company’s growth. It hasn’t always been this way, as mezzanine has been known as a pricey option for capital in the past. This has changed as mezzanine finance has sought to become a more viable option for direct lending…………………….Read More

What you need to know about financing a business

The business world is a world of ferocity equivalent to that of a shark tank. Every business owner and company is looking to find its way to the top of the food chain and flourish in the world of business.There is an issue that comes with wanting to grow your company and that is a question of finance. …………………….Read More

Understanding Unsecured Business Loans

Unsecured business loans is a general term that can mean a variety of things. It takes market understanding and structuring expertise to evaluate a given unsecured business loan. Unsecured business loans are provided by non-bank providers of capital who have a comfort level with higher risk…………………….Read More

M&A Alternatives

M&A is a reference to either the merging of two companies into a new, separate company, or, the buying of one company by another. M&A finance appears to act as a sort of ‘be all, end all’ situation; either you merge or buy…………………….Read More

How to get business finance

You have decided to enter the world of business. Your market is clear, and your business plan is strong. Your next step is to find a way to make your dream come true. The problem with having a dream is you don’t always have the money to fund such a venture …………………..Read More

Commercial loans for business

A commercial loan is a common form of financing in the business world. Companies use commercial loans to finance their future business ventures when they do not have the capital in house for such activities.Commercial loans are generally to fund working capital………………….Read More

Commercial business loans for your business

What is a commercial business loan? A commercial business loan is a form of funding for your business.It is generally used to fund working capital, growth or an acquisition. Commercial business loans are generally not used for real estate purchases………………….Read More

Overview of Middle Market Lending

Middle market lending refers to a large ecosystem of various types of lenders. They include banks, finance companies and debt funds.Middle market lending has expanded dramatically over the past 5 years due to the onset of new funds…………………Read More

What are term loans?

A term loan is a general category of loans that describes a loan with a repayment structure over an intermediate to extended period of time.Term loans are unique in that principal is usually, but not always, paid back in periodic installments………………..Read More

What is Quasi-Equity Financing?

Quasi-Equity financing is debt that appears, in some aspects, as an equity investment. Characteristics of quasi-equity financing would include either being an unsecured loan, or being a flexible loan repayment schedule………………..Read More

What is Junior Debt?

Junior debt, also known as subordinated debt, is debt that is unsecured and is lower on the debt hierarchy than other debt claims.Junior debt is provided without any collateral to back it and is often subject to an inter creditor agreement with the senior lender. ……………….Read More

Understanding Growth and Business Transition Capital

In today’s business world a company must do everything it can on a daily basis to ensure that it keeps itself competitive within its specific field. One of the most necessary ingredients to keeping your company relevant is capital……………….Read More

The Growing Appeal Of Mezzanine Financing

Mezzanine financing is becoming one of the top options when a company is looking for financing to transform their business. The growing appeal of mezzanine financing is becoming noticed……………….Read More

Mezzanine Loans For IT Companies

Technology has become the future of business. In today’s business market, the best way to set a company ahead of another company is through a technological advantage. Companies that specialize in information technology (IT) have very high ceilings if their technology is cutting edge………………Read More

Mezzanine Financing for Management Buy-Outs/Buy-Ins

Members of management within a company are the strategists of the company. They decide how to get the job done as efficiently as possible. The problem is that management is at the mercy of the stockholders and sometimes the stockholders do not agree with management on how to complete certain business ventures……………..Read More

Is this the right time for Mergers and Acquisitions?

Is this the right time for mergers and acquisitions? To answer this question we must look at the economy as a whole. The stock market is a telltale sign to how the economy is preforming. When the stock market rises, mergers and acquisitions also rise along side of it. …………….Read More

Understanding Takeovers In A Merger And Acquisition Process

Understanding takeovers in a merger and acquisition process can be a complex issue. There are many different forms of takeovers and vocabulary to describe them. A company can look to takeover management of another company through mutual agreement…………….Read More

Need For Funding Helps Mezzanine Debt Revival

Mezzanine financing is poised to make a comeback as a lending alternative. Businesses are looking for funding and banks and private equity investors cannot provide the capital to every company or deal in need of funding……………Read More

Key Steps For A Successful Acquisition

The key steps for a successful acquisition vary slightly from case to case. The general key steps for a successful acquisition, however, can be applied to almost every acquisition. It is important to have sound rationale and a good business plan when going forth with an acquisition………….Read More

How Mezzanine Finance Can Help SMEs

A business that brings in an annual turnover from £500,000 to £10,000,000 is known as an SME. SMEs are an important cog in the economy as they are very instrumental in creating new jobs………..Read More

Financing An Acquisition During An Economic Slowdown

Financing an acquisition during an economic slowdown is a strategy used by many companies in the past.It is difficult for a business to grow to its fullest potential through internally generated methods………Read More

Mezzanine Funding As An Alternative To Bank Borrowing

When you are looking for a loan for your company, the first logical place to look to is the bank. If the bank cannot provide the funding, you are not out of luck. Another option is to use mezzanine funding as an alternative to bank borrowing………Read More

Closing The Funding Gap Through Mezzanine Finance

Closing the funding gap through mezzanine finance is the next step in the European economy. Mezzanine financing, viewed as the layer in between senior debt and equityinvestment, is being looked at more favorably by SMEs. The process of closing the funding gap through mezzanine finance is becoming a reality in the UK as SMEs look toward mezzanine finance for their funding needs. …….Read More

Mezzanine money for middle market companies

In today’s high regulated banking environment, smaller companies are having a harder time securing loans from banks. An option that middle market companies have found success with has been mezzanine lending. Mezzanine money for middle market companies is often a perfect match for their funding needs, due to the long term, patient nature of the mezzanine capital…….Read More

Key benefits of Mezzanine Financing for middle market companies

Due to the way the market has evolved in recent years, mezzanine financing has become a great option for companies looking to get financing. Banks have strayed away from giving loans to middle market companies, which has allowed mezzanine lenders to take the lead in providing capital directly to private companies in the middle market……Read More

Importance of mezzanine capital in funding firms

When a company lacks the necessary capital to fund its business, it must look elsewhere to receive capital in the form of a loan. The importance of mezzanine capital in funding firms cannot be overstated. Mezzanine capital is a reliable source of funding for businesses. It is flexible, patient and low cost capital…….Read More

How mezzanine finance can help buyout firms

Mezzanine financing is a great tool to utilize when looking to finance a buyout of a firm. How mezzanine finance can help buyout firms is through providing capital for the riskier part of the capital structure.Mezzanine finance is less expensive than an equity sponsor’s capital and is more flexible than a bank loan………..Read More

What is a leveraged buyout?

Leveraged buyouts are commonly used in the process of business acquisitions. So, what is a leveraged buyout? A leveraged buyout is defined as an acquisition that takes place with a blend of equity and large amounts of borrowed money……………..Read More

What is a Bridge Loan?

A bridge loan is a short-term loan. The period of a bridge loan is anywhere from 2 weeks to 3 years. The term bridge loan derives its name from the fact that the loan acts as a “bridge” between the stages of financing for a company…………….Read More

How to grow your business

The question of how to grow your business can be made easier with the help of growth capital. If you are looking to grow your business or expand it, growth capital is a necessity. Growth capital is a specific form of capital that is not available from local lenders……………..Read More

How to Get a Business Loan

When learning how to get a business loan, the most important thing is to have a team of strong financial and legal advisors who can present your plan in a professional way to the lending markets. An important step to getting a business loan is to keep assumptions grounded and moderate. When trying to get a business loan, there are a wide variety of providers……………Read More

How to buy a business

There are several methods when deciding how to buy a business. Mezzanine loans are options for companies who are looking to expand their business through the process of acquisition.Those who are pursuing mezzanine loans are not required to invest a large amount of equity into the deal.Mezzanine loans are beneficial when buying a business………….Read More

Getting a small business loan

The first step for getting a small business loan is to have a valid plan to use the loan for the growth of your company. This growth can vary from acquisitions of other businesses to product development, however the loan must be put to good………….Read More

How to finance a business

The big question is how to finance a business? A business needs to be financed at many different stages of its development. Reasons for a company needing financing include its initial startup, expansion, acquisition, and even shareholder………….Read More

Business Acquisition Loans and Financing

Lining up a big deal requires capital to bring to the closing table. Mid-sized businesses need business acquisition loans and financing to do this. If the company you are buying is a good one, the purchase price will be based on earnings………….Read More

What is Business Acquisition Loans?

Business acquisition loans are a form of financing used to fund the acquisition of a business. Business acquisition loans are used by entrepreneurs or companies and come in a variety of forms such as bank loans, mezzanine loans or asset based loans…………Read More

What is Acquisition Funding?

For those looking to grow their business via acquisition, it is crucial to not only identify the right company, but to also secure the necessary acquisition funding. Attract Capital’s acquisition funding solution provides entrepreneurswith flexibility…………Read More

What is Acquisition Financing?

Growing your business by way of acquisition is often both easier and faster than building from the ground up. However, securing acquisition financing can be a daunting challenge. Whether it is a combination ofbank loans, mezzanine debt or………… Read More

What is Mezzanine Funding?

Mezzanine funding is a hybrid form of financing that is often used by business owners to fund acquisitions. Mezzanine funding is a form of cash flow financing and is often called leveraged financing. Mezzanine funding is more flexible than other………… Read More

What is Business Acquisition Financing?

Business acquisition financing is capital used by one company to acquire a target acquisition company. Business acquisition financing may come in a combination of debt, equity, and hybrid financing. Usually loans are used as business acquisition financing………… Read More

What is a Mezzanine loan?

A mezzanine loan a viable option for those seeking to grow their business through acquisition and who do not wish to invest a large amount of equity in the deal…………. Read More

What is mezzanine lending?

Mezzanine lending is a unique form of cash flow financing. Although mezzanine debt is more expensive than typical forms of capital, it does not require a personal guarantee or collateral. Mezzanine lenders take a big picture approach analyzing………… Read More

What are the different capital sources used by a lower middle market company?

The lower middle market accounts for more than an estimated 90 percent of the total number of all middle-market companies in most global economies. In the US, companies with an EBITDA about/below the $10 million bracket are generally considered………… Read More

Capital Market Overview

The Capital Market is a vast system of financial markets that provide liquidity for corporations. It is a generic term used to describe financial markets such as the stock or bond market that provide access to capital for companies. It can also be used to describe the………… Read More

Mezzanine Debt Middle Market Overview 2014

The mezzanine debt market in the United States is flush with capital in search of quality deals. Many middle market funds are expanding with new funds in new locations. Some funds have discovered untapped market potential in international markets such as the United Kingdom and Germany………… Read More

Mezzanine Financing Overview

Mezzanine financing is a form of a loan that sits beneath senior debt in a company’s capital structure but on top of preferred equity or common stock. Mezzanine financing gets its name for two reasons. A mezzanine level is the middle level in a stadium or theater………… Read More

What is Pay-In-Kind Interest in Mezzanine Debt?

Pay-In-Kind interest, whose acronym PIK is most commonly used in mezzanine debt circles, is a periodic form of payment in which the interest payment is not paid in cash but rather by increasing the principal amount of the security in the amount of the interest……….. Read More

How does mezzanine debt exit?

Typically, in a mezzanine deal, the transaction period is for 5 to 8 years, with the possibility of an early exit. In most cases, mezzanine investments are taken out either through a change-of-control sale or recapitalization of the company………. Read More

What is Mezzanine Debt Structure?

Mezzanine Debt, which has been around for over 30 years, is most commonly used by companies for acquisitions, recapitalizations, management and leveraged buyouts and in some cases to further growth expansion projects………. Read More

The Warrant Component of a Mezzanine Loan

Generally, mezzanine lendersare not looking to be long-term stockholders, but rather to achieve a target rate of return. Nevertheless, returns linked to share price appreciation take on a small yet vital role in mezzanine activity……… Read More

Ranking in the Capital Structure

In corporate financial jargon, mezzanine capital generally refers to a tier in a company’s capital structure between debt and equity. Mezzanine financing takes the form of subordinated, unsecured debt, and in some cases, it is secured by a second lien…….. Read More

Debt Solutions for Lower Middle Market Companies

In financial circles, the middle market sector is viewed as having three distinct segments. Companies with EBITDA below $10 million are termed as ‘lower middle market’, those with an EBITDA of $75 million or more as ‘upper middle market’ and companies that fall within $10 to $75 million of EBITDA, as the ‘core middle market’……. Read More

Middle Market Runaway

The middle market is on fire. Valuations are high and going higher it seems. As the fiscal years from global financial crisis period move out of the historical frame, valuations have roared back. The valuation mania seems to have a lot to do with……. Read More

The History of Mezzanine Debt

Mezzanine debt, which is used by cash flow positive companies, for growth expansion projects, acquisitions, recapitalization and management or leveraged buyouts, has been around for nearly 30 years. However, its use in Northern America though relatively new is fast growing since leading companies are starting to realize……. Read More

Mezzanine Loan Financing

Mezzanine financing as a form of hybrid capital has been around for 30 years and is fast gaining popularity as a financing source for corporate expansion projects, acquisitions, recapitalizations, management buy-outs (MBO) and leveraged buy-outs (LBO). Listed below are a few frequently asked questions about mezzanine funding……. Read More

Benefits of Mezzanine Financing

Mezzanine financing, also sometimes referred to as subordinated debt, is a viable financing option for businesses seeking acquisition financing, growth capital financing or refinancing. A hybrid of debt and equity financing, the arrangement involves business owner borrowing money and paying the lender interest and additional return based on the future value of the company……. Read More

Merger and Acquisition Checklist

Mergers and acquisitions are integral to the globalization process. However, as always in the M&A game, there are several significant issues, facts, circumstances and dynamics, which play an important role in ensuring whether the merger & acquisition is a success or not……. Read More

Acquisition Funding Options

It is vital for both a buyer seeking to acquire a company and an owner considering selling his business to understand the different acquisition funding options. For a buyer, the different acquisition funding options will determine the most cost effective route to create a capital struct…… Read More

Mezzanine Debt Providers

A mezzanine debt provider is a lender who provides mezzanine debt, which mostly tends to be funds ranging in size from $100 million to over $ 5 billion. Such providers seek to lend to companies with stable EBITDA levels who can safely service higher levels of debt. Mezzanine debt is…… Read More

Merger and Acquisition Financing Options

The primary goal of a company is growth and its top management is always on a lookout for ways to achieve that. Merger and acquisitions are one of those ways to set the juggernaut of growth rolling. The key principle behind any Merger and Acquisitions is to enhance shareholder value…… Read More

How Growth Capital Works

Every new business needs money, especially when it is trying to expand, and become successful. There are a number of options open to businesses looking to grow, from loans, to reinvesting profit. But if a business is trying to grow quickly, then the best way of getting the funds….. Read More

Acquisition Financing Advisors in the USA

Acquisition Financing Advisors in the USA play a very important role in our economy. Many companies have the desire to grow through acquisitions, but lack the market expertise and contacts to find acquisition financing on their own. Acquisitions allow for faster, more….. Read More

How To Raise Money For Your Business

The issue of how to raise money for your business is a vexing one for young companies with big ambition. Raising money for your business is not something that can be learned in a book or in a business school. There are many “How to Books” out there and many courses….. Read More

Mezzanine Debt Vs. Senior Debt

Mezzanine debt is a hybrid form of capital that is part loan and part investment. Senior debt is a loan from a bank. There are many differences between the two. Banks lend off of asset values so most senior loans are collateralized with assets. The bank loan is always secured….. Read More

Acquisition Financing Options

Companies have an array of acquisition financing options depending on their capital position and negotiating position with a seller. Well capitalized buyers, that have the luxury of cash on their balance sheets, can pay all cash or part cash and part seller note or stock….. Read More

Capital Funding Solutions

The best way to understand the best capital funding solution is to make certain you are asking the right questions. Any consideration of the pros and cons of various funding paths starts with a deliberative approach to what a company wants to do. Are you looking to….. Read More

How Business Acquisition Loan is Used in Business

Business acquisition loans hold great value when deployed properly. They can help a company get to the next level, increasing both its scale and value. Smart business owners understand that there are two ways to grow – organically or through acquisition….. Read More

Merger and Acquisition Specialists USA

Mergers and Acquisitions are an important component of the US economy. They allow companies to grow in sweeping fashion across the country. Companies who engage in Mergers and Acquisitions can built up large portfolios of customers and also develop….. Read More

Business Acquisition Funding

Business Acquisition Funding is commonly sought but less commonly understood. There is a veritable alphabet soup of terms and descriptions used to describe the many forms of Business Acquisition Funding. They range from terms used by banks and capital….. Read More

Mezzanine & Private Equity

Mezzanine and private equity are tools for corporate growth. When properly deployed, both can increase the value of a company. They are best understood as layers of capital in a company’s balance sheet. The bank loan occupies the senior level. The equity occupies the….. Read More

Why should we go for an Experienced Financial Consultant?

Experience is life’s great teacher. Invaluable insights are gained from the sheer experience of doing over a long period of time. This is particularly true for the financial world which undergoes rapid change and innovation on a recurring basis. Financial consultants are worth their….. Read More

How To Get Business Acquisition Financing

The US Financing Markets offer myriad ways to get business acquisition financing in many different forms. Business acquisition financing is different than business working capital financing. With the later, banks and finance companies can lend against a company’s assets to….. Read More

What is Mezzanine Debt Financing

Mezzanine Debt Financing is a hybrid form of financing, provided by funds for acquisitions, growth or buy-outs. While structured as a loan, mezzanine debt is a close cousin of equity investment. Often, it can be used as an equity investment substitute. This is a great thing for….. Read More

List of Mezzanine Funding Providers in the USA

The mezzanine market in the USA is a large market but regionally scattered market. Mezzanine providers in the USA come in all shapes in sizes including large funds, middle market funds and small funds. There is further differentiation based on industry, investment size, and….. Read More

Merger and Acquisitions Process

For many companies, the merger and acquisitions process is a black mysterious box. Because investment bankers use confusing language to describe what they do, business owners often feel very over matched when trying to understand the merger and acquisitions process….. Read More

How to Find the Right Financial Consultant for Your Business

There are a variety of places to look to find a financial consultant for your business. You can look in the phone book, your church bulletin, or even the side of a bus. Many financial consultants advertise there, but we would not recommend that as a high quality sourcing method….. Read More

Tips to Raising Capital for your New Business

It is hard to raise capital for new businesses. All of the collective wisdom may lead you to a conclusion analogous to that of Dante’s Inferno – Abandon All Hope Ye Who Enter. While it is challenging to do, there are ways to minimize the pain points and maximize….. Read More

How to Choose a Financial Reporting Advisor

Choosing a financial reporting advisor is like trying to purchase a good bottle of wine. All the bottles look the same, with only a label distinguishing them all. You cannot really tell which one is the best. The key to choosing the right bottle is in doing your homework before you go to….. Read More

How to Choose a Merger and Acquisition Specialist

Given the importance of mergers and acquisitions to your company, it is recommended to choose a merger and acquisition specialist with great care. There are four steps to doing this properly. The payoff to finding the right person is substantial, as the right resource…..Read More

How Growth Capital Financing Helps in Business Expansion

Business expansion requires a variety of elements for success. Entrepreneurial spirit, growing market demand, and a solid business plan come to mind. Few things are as important as understanding how growth capital financing helps in business expansion….. Read More

How to Finance an Acquisition

While basic in form, this question is complex in answer. Many purchasers of businesses feel they know all there is to know about how to finance an acquisition….. Read More

Finding a Financial Advisor for Your Business

Financial Advisors are essential contributors to middle market companies. They help management teams and ownership groups chart….. Read More

Lower Middle M&A Market Today

The GDP of the U.S. Middle Market alone is accounted to rank as the fourth-largest economy in the world, just behind Japan’s. Hence there is a….. Read More

Recent Influences on Lower Middle M&A Market

Based on the overall transaction activity, there is imbalance in the M&A market, with demand for companies getting ahead of….. Read More

Middle-Market Mezzanine Debt

Mezzanine debt is that part of a corporation’s capital structure that is placed below senior debt, but above equity. It is considered….. Read More

Current Trends in Middle-Market Mezzanine

Investing in middle-market mezzanine debt may involve greater overall leverage levels than in the high-yield market with risks that range from….. Read More

How Do I Finance an Acquisition?

Acquisitions in today’s fast-paced and challenging business environment can provide companies with the critical mass necessary to….. Read More

How to buy a business

There are several methods when deciding how to buy a business. Mezzanine loans are options for companies who are looking to expand their business through the process of acquisition.Those who are pursuing mezzanine loans are not required to invest a large amount of equity into the deal.Mezzanine loans are beneficial when buying a business………….Read More

Getting a small business loan

The first step for getting a small business loan is to have a valid plan to use the loan for the growth of your company. This growth can vary from acquisitions of other businesses to product development, however the loan must be put to good………….Read More

How to finance a business

The big question is how to finance a business? A business needs to be financed at many different stages of its development. Reasons for a company needing financing include its initial startup, expansion, acquisition, and even shareholder………….Read More

Business Acquisition Loans and Financing

Lining up a big deal requires capital to bring to the closing table. Mid-sized businesses need business acquisition loans and financing to do this. If the company you are buying is a good one, the purchase price will be based on earnings………….Read More

What is Business Acquisition Loans?

Business acquisition loans are a form of financing used to fund the acquisition of a business. Business acquisition loans are used by entrepreneurs or companies and come in a variety of forms such as bank loans, mezzanine loans or asset based loans…………Read More

What is Acquisition Funding?

For those looking to grow their business via acquisition, it is crucial to not only identify the right company, but to also secure the necessary acquisition funding. Attract Capital’s acquisition funding solution provides entrepreneurswith flexibility…………Read More

What is Acquisition Financing?

Growing your business by way of acquisition is often both easier and faster than building from the ground up. However, securing acquisition financing can be a daunting challenge. Whether it is a combination ofbank loans, mezzanine debt or………… Read More

What is Mezzanine Funding?

Mezzanine funding is a hybrid form of financing that is often used by business owners to fund acquisitions. Mezzanine funding is a form of cash flow financing and is often called leveraged financing. Mezzanine funding is more flexible than other………… Read More

What is Business Acquisition Financing?

Business acquisition financing is capital used by one company to acquire a target acquisition company. Business acquisition financing may come in a combination of debt, equity, and hybrid financing. Usually loans are used as business acquisition financing………… Read More

What is a Mezzanine loan?

A mezzanine loan a viable option for those seeking to grow their business through acquisition and who do not wish to invest a large amount of equity in the deal…………. Read More

What are the different capital sources used by a lower middle market company?

The lower middle market accounts for more than an estimated 90 percent of the total number of all middle-market companies in most global economies. In the US, companies with an EBITDA about/below the $10 million bracket are generally considered………… Read More

Capital Market Overview

The Capital Market is a vast system of financial markets that provide liquidity for corporations. It is a generic term used to describe financial markets such as the stock or bond market that provide access to capital for companies. It can also be used to describe the………… Read More

Mezzanine Debt Middle Market Overview 2014

The mezzanine debt market in the United States is flush with capital in search of quality deals. Many middle market funds are expanding with new funds in new locations. Some funds have discovered untapped market potential in international markets such as the United Kingdom and Germany………… Read More

Mezzanine Financing Overview

Mezzanine financing is a form of a loan that sits beneath senior debt in a company’s capital structure but on top of preferred equity or common stock. Mezzanine financing gets its name for two reasons. A mezzanine level is the middle level in a stadium or theater………… Read More

What is Pay-In-Kind Interest in Mezzanine Debt?

Pay-In-Kind interest, whose acronym PIK is most commonly used in mezzanine debt circles, is a periodic form of payment in which the interest payment is not paid in cash but rather by increasing the principal amount of the security in the amount of the interest……….. Read More

How does mezzanine debt exit?

Typically, in a mezzanine deal, the transaction period is for 5 to 8 years, with the possibility of an early exit. In most cases, mezzanine investments are taken out either through a change-of-control sale or recapitalization of the company………. Read More

What is Mezzanine Debt Structure?

Mezzanine Debt, which has been around for over 30 years, is most commonly used by companies for acquisitions, recapitalizations, management and leveraged buyouts and in some cases to further growth expansion projects………. Read More

The Warrant Component of a Mezzanine Loan

Generally, mezzanine lendersare not looking to be long-term stockholders, but rather to achieve a target rate of return. Nevertheless, returns linked to share price appreciation take on a small yet vital role in mezzanine activity……… Read More

Ranking in the Capital Structure

In corporate financial jargon, mezzanine capital generally refers to a tier in a company’s capital structure between debt and equity. Mezzanine financing takes the form of subordinated, unsecured debt, and in some cases, it is secured by a second lien…….. Read More

Debt Solutions for Lower Middle Market Companies

In financial circles, the middle market sector is viewed as having three distinct segments. Companies with EBITDA below $10 million are termed as ‘lower middle market’, those with an EBITDA of $75 million or more as ‘upper middle market’ and companies that fall within $10 to $75 million of EBITDA, as the ‘core middle market’……. Read More

Middle Market Runaway

The middle market is on fire. Valuations are high and going higher it seems. As the fiscal years from global financial crisis period move out of the historical frame, valuations have roared back. The valuation mania seems to have a lot to do with……. Read More

The History of Mezzanine Debt

Mezzanine debt, which is used by cash flow positive companies, for growth expansion projects, acquisitions, recapitalization and management or leveraged buyouts, has been around for nearly 30 years. However, its use in Northern America though relatively new is fast growing since leading companies are starting to realize……. Read More

Mezzanine Loan Financing

Mezzanine financing as a form of hybrid capital has been around for 30 years and is fast gaining popularity as a financing source for corporate expansion projects, acquisitions, recapitalizations, management buy-outs (MBO) and leveraged buy-outs (LBO). Listed below are a few frequently asked questions about mezzanine funding……. Read More

Benefits of Mezzanine Financing

Mezzanine financing, also sometimes referred to as subordinated debt, is a viable financing option for businesses seeking acquisition financing, growth capital financing or refinancing. A hybrid of debt and equity financing, the arrangement involves business owner borrowing money and paying the lender interest and additional return based on the future value of the company……. Read More

Merger and Acquisition Checklist

Mergers and acquisitions are integral to the globalization process. However, as always in the M&A game, there are several significant issues, facts, circumstances and dynamics, which play an important role in ensuring whether the merger & acquisition is a success or not……. Read More

Acquisition Funding Options

It is vital for both a buyer seeking to acquire a company and an owner considering selling his business to understand the different acquisition funding options. For a buyer, the different acquisition funding options will determine the most cost effective route to create a capital struct…… Read More

Mezzanine Debt Providers

A mezzanine debt provider is a lender who provides mezzanine debt, which mostly tends to be funds ranging in size from $100 million to over $ 5 billion. Such providers seek to lend to companies with stable EBITDA levels who can safely service higher levels of debt. Mezzanine debt is…… Read More

Merger and Acquisition Financing Options

The primary goal of a company is growth and its top management is always on a lookout for ways to achieve that. Merger and acquisitions are one of those ways to set the juggernaut of growth rolling. The key principle behind any Merger and Acquisitions is to enhance shareholder value…… Read More

How Growth Capital Works

Every new business needs money, especially when it is trying to expand, and become successful. There are a number of options open to businesses looking to grow, from loans, to reinvesting profit. But if a business is trying to grow quickly, then the best way of getting the funds….. Read More

Acquisition Financing Advisors in the USA

Acquisition Financing Advisors in the USA play a very important role in our economy. Many companies have the desire to grow through acquisitions, but lack the market expertise and contacts to find acquisition financing on their own. Acquisitions allow for faster, more….. Read More

How To Raise Money For Your Business

The issue of how to raise money for your business is a vexing one for young companies with big ambition. Raising money for your business is not something that can be learned in a book or in a business school. There are many “How to Books” out there and many courses….. Read More

Mezzanine Debt Vs. Senior Debt

Mezzanine debt is a hybrid form of capital that is part loan and part investment. Senior debt is a loan from a bank. There are many differences between the two. Banks lend off of asset values so most senior loans are collateralized with assets. The bank loan is always secured….. Read More

Acquisition Financing Options

Companies have an array of acquisition financing options depending on their capital position and negotiating position with a seller. Well capitalized buyers, that have the luxury of cash on their balance sheets, can pay all cash or part cash and part seller note or stock….. Read More

Capital Funding Solutions

The best way to understand the best capital funding solution is to make certain you are asking the right questions. Any consideration of the pros and cons of various funding paths starts with a deliberative approach to what a company wants to do. Are you looking to….. Read More

How Business Acquisition Loan is Used in Business

Business acquisition loans hold great value when deployed properly. They can help a company get to the next level, increasing both its scale and value. Smart business owners understand that there are two ways to grow – organically or through acquisition….. Read More

Merger and Acquisition Specialists USA

Mergers and Acquisitions are an important component of the US economy. They allow companies to grow in sweeping fashion across the country. Companies who engage in Mergers and Acquisitions can built up large portfolios of customers and also develop….. Read More

Business Acquisition Funding

Business Acquisition Funding is commonly sought but less commonly understood. There is a veritable alphabet soup of terms and descriptions used to describe the many forms of Business Acquisition Funding. They range from terms used by banks and capital….. Read More

Mezzanine & Private Equity

Mezzanine and private equity are tools for corporate growth. When properly deployed, both can increase the value of a company. They are best understood as layers of capital in a company’s balance sheet. The bank loan occupies the senior level. The equity occupies the….. Read More

Why should we go for an Experienced Financial Consultant?

Experience is life’s great teacher. Invaluable insights are gained from the sheer experience of doing over a long period of time. This is particularly true for the financial world which undergoes rapid change and innovation on a recurring basis. Financial consultants are worth their….. Read More

How To Get Business Acquisition Financing

The US Financing Markets offer myriad ways to get business acquisition financing in many different forms. Business acquisition financing is different than business working capital financing. With the later, banks and finance companies can lend against a company’s assets to….. Read More

What is Mezzanine Debt Financing

Mezzanine Debt Financing is a hybrid form of financing, provided by funds for acquisitions, growth or buy-outs. While structured as a loan, mezzanine debt is a close cousin of equity investment. Often, it can be used as an equity investment substitute. This is a great thing for….. Read More

List of Mezzanine Funding Providers in the USA

The mezzanine market in the USA is a large market but regionally scattered market. Mezzanine providers in the USA come in all shapes in sizes including large funds, middle market funds and small funds. There is further differentiation based on industry, investment size, and….. Read More

Merger and Acquisitions Process

For many companies, the merger and acquisitions process is a black mysterious box. Because investment bankers use confusing language to describe what they do, business owners often feel very over matched when trying to understand the merger and acquisitions process….. Read More

How to Find the Right Financial Consultant for Your Business

There are a variety of places to look to find a financial consultant for your business. You can look in the phone book, your church bulletin, or even the side of a bus. Many financial consultants advertise there, but we would not recommend that as a high quality sourcing method….. Read More

Tips to Raising Capital for your New Business

It is hard to raise capital for new businesses. All of the collective wisdom may lead you to a conclusion analogous to that of Dante’s Inferno – Abandon All Hope Ye Who Enter. While it is challenging to do, there are ways to minimize the pain points and maximize….. Read More

How to Choose a Financial Reporting Advisor

Choosing a financial reporting advisor is like trying to purchase a good bottle of wine. All the bottles look the same, with only a label distinguishing them all. You cannot really tell which one is the best. The key to choosing the right bottle is in doing your homework before you go to….. Read More

How to Choose a Merger and Acquisition Specialist

Given the importance of mergers and acquisitions to your company, it is recommended to choose a merger and acquisition specialist with great care. There are four steps to doing this properly. The payoff to finding the right person is substantial, as the right resource…..Read More

How Growth Capital Financing Helps in Business Expansion

Business expansion requires a variety of elements for success. Entrepreneurial spirit, growing market demand, and a solid business plan come to mind. Few things are as important as understanding how growth capital financing helps in business expansion….. Read More

Finding a Financial Advisor for Your Business

Financial Advisors are essential contributors to middle market companies. They help management teams and ownership groups chart….. Read More

Lower Middle M&A Market Today

The GDP of the U.S. Middle Market alone is accounted to rank as the fourth-largest economy in the world, just behind Japan’s. Hence there is a….. Read More

Recent Influences on Lower Middle M&A Market

Based on the overall transaction activity, there is imbalance in the M&A market, with demand for companies getting ahead of….. Read More

Middle-Market Mezzanine Debt

Mezzanine debt is that part of a corporation’s capital structure that is placed below senior debt, but above equity. It is considered….. Read More

Current Trends in Middle-Market Mezzanine

Investing in middle-market mezzanine debt may involve greater overall leverage levels than in the high-yield market with risks that range from….. Read More

How Do I Finance an Acquisition?

Acquisitions in today’s fast-paced and challenging business environment can provide companies with the critical mass necessary to….. Read More

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From Our Blog

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Scale Up Checklist: The 5 Best Way to Ensure Business Expansion Success

Scale Up Checklist: The 5 Best Way to Ensure Business Expansion Success

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Growth takes on many forms for middle ma... read more

Deal Symphonies – The importance of Conducting Deal teams

Deal Symphonies – The importance of Conducting Deal teams

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Deals are like symphonies – they have mu... read more

What is Growth Capital?

What is Growth Capital?

September 22nd, 2017

Growth Capital describes a form of f... read more

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