Adding Value to Your Business Through Mezzanine Loans

Israeli Hiker, Laurie Rimon, had an unexpected turn of events when hiking with friends in the eastern Galilee where she found a tiny, shiny object in the grass.

This object was a 2,000-year-old Roman coin that is only the second of its kind found in the whole world. The coin, from AD107 and minted by Emperor Trajan, has an image of Emperor Augustus on one side. It is not everyday that someone discovers such an amazing and rare item such as this. This item’s scarcity is what makes it so uber-valuable.

A mezzanine loan is an often unheard-of entity that is a great place to boost the value of your company while, at the same time, allowing for its potential growth. Mezzanine loans provide 100% of the funding needed for an acquisition or buyout. This gives your company the flexibility it needs to invest in the development of strategies and opportunities.

Lenders evaluate your creditworthiness based on the stability of your company’s cash flow over time. If your company has a strong cash flow, a plausible loan amount will be created as a multiple of your company’s EBITDA. The lower the multiple, the better.

Mezzanine lenders receive their return on investment through interest rates primarily, and then upside on their warrants. Finding the right mezzanine loan that fits your business will help your company become part of the rare group of prized businesses.