Capital stack is destiny in the deal world, and bigger is usually better.  In any situation, to be able to add more stack, and be multi-levelled is usually a smart move.  Extra layers allow you do things you ordinarily cannot do – to fund the unexpected, to scale- up, to grow at a faster rate. Continue reading →

Often owners of mid-sized companies wonder if it’s really important to have a written mission statement. While it may seem to be just a plaque on the wall with little or no value, a clear mission statement, Continue reading →

Most acquisitions conform to traditional deal structures with a large equity component in the capital stack.  Most buyers are required to invest upwards of 30% equity by the lender, to give their deal a more financeable structure. Continue reading →

Gap financing also known as stretch financing is that hard to reach part of your capital raise.  It is that extra piece of capital needed after you have brought in your senior loan.  While the gap may be small in size relative to the entire capital stack, it plays an inordinate role in closing your deal. Continue reading →

Mezzanine debt is a versatile form of capital, capable of sliding up or down the capital stack depending on your need.  It owes this flexibility to its inherent advantage of evaluating businesses on a cash flow basis. Continue reading →