A roll-up acquisition strategy is a highly effective way to build a company, especially in a fragmented industry. The dynamic nature of the acquisition program makes mezzanine debt lenders a great resource for turbo-charged roll-ups. Roll-up entrepreneurs usually have a competitive edge they wish to expand and use acquisitions as a form of growth to achieve desired scale.
Growth financing is a key element to propel a business forward, especially in an uncertain economy. Broadly speaking, growth financing can take the form of a number of structured debt solutions including mezzanine debt, acquisition financing and even asset financing. The middle market finance growth equation calls for capital, strategy, and execution to properly launch a scale up.
Many deal entrepreneurs see acquisition financing capital in merely a functional light, a commodity to be procured at a volume and a price. Often the acquisition financing sourcing process consists of sourcing multiple term sheets and comparing the pricing and terms of each.
Corporate growth for middle market companies is a heavy lift. Most family owned, middle market companies’ level out at a certain growth rate once they reach maturity. To take a business from $20 million in revenue to $50 million in revenue requires a high-level business transformation expertise and corporate growth muscle.
Growth Capital is widely available in the middle market under a host of different names. Each growth capital provider approaches the investment differently with a unique perspective and funding methodology.