LiveZilla Live Chat Software

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. There are several key benefits of mezzanine financing for middle market companies.

Mezzanine financing provides capital for growth, acquisition, and liquidity. Mezzanine financing is cost-efficient and helps provide the capital necessary for middle market companies to expand their business. Mezzanine capital is cheaper than equity financing and it also provides flexible loan terms, which makes it a superior option for smaller companies. Another one of the key benefits of mezzanine financing for middle market companies is the providing of cash out liquidity to middle market business owners.

Mezzanine lenders, unlike banks, will provide a loan to fund a large dividend to the business owner. This is a great way for an owner to realize liquidity without suffering any share dilution from an investor. Another key benefit of mezzanine financing for middle market companies is acquisition financing. Acquisition financing allows a company to purchase a business at a cash flow valuation level. When utilizing mezzanine financing to fund an acquisition, you can significantly increase the size and the profitability of your business. Long term, the key benefits of mezzanine financing for middle market companies centers about building a more valuable company. With long term patient mezzanine financing, you can build a bigger, more diverse and more valuable company.

What We Offer
  • Corporate Finance Expertise
  • Vast Practical Experience
  • Legendary Customer Service
Latest M&A Industry Updates!
  • Current trends in Lower Middle M&A Market and Middle-market Mezzanine!
Get a Free Consultation!
  • Mezzanine Funding Solutions
  • Advisory Services
  • End-to-end Acquisition Services
Get a Free Consultation

* Fields marked with an asterisk are mandatory

captcha

From Our Blog

Special Recent Posts

Acquisitions: The Dangerous Game – How to Avoid Fatal Mistakes

Acquisitions: The Dangerous Game – How to Avoid Fatal Mistakes

August 17th, 2017

Acquisitions can be extremely beneficial... read more

Make the Best Expansion Decisions: Learn to Swim

Make the Best Expansion Decisions: Learn to Swim

August 16th, 2017

Diving into the bold endeavor of expandi... read more

The Art of Fundless Sponsorship

The Art of Fundless Sponsorship

August 2nd, 2017

The act of using other people’s money to... read more

© 2017 AttractCapital, LLC All Rights Reserved.