Funding Solutions

The eternal tension in acquisition structuring is balancing operational liquidity with leverage levels. Buyers often invade the operational debt capacity of a business to fund […]

Asset based lenders require collateral in the form of receivables or inventory. Despite borrowers having strong cash flow leverage metrics, they are confined to a […]

Earn-outs are used by buyers to plug the valuation gap. Sellers want more for their business and the buyer cannot afford to provide cash, so […]

The easiest way to differentiate between bridge loans and acquisition financing is by their maturity date. Bridge loans are very short term, usually 1 year […]

Mezzanine structures are built upon revenue visibility and cash flow stability. When a company knows for certain that revenue is showing up every year at […]

Lenders are conservative and use a number of protocols to test the business risk of their lending applicants. This is especially true for mezzanine debt […]

Financial Models contain tea leaves about your financing chances with mezzanine lenders. There are several things to be mindful of when constructing the model, so […]

Mezzanine lenders are expert sleuths at exposing fancy financial engineering in deals. It happens very quickly almost before the investment banker is finished with the […]

While profitability is great to have and certainly a key criterion, it alone does not lead to a successful mezzanine debt raise. Profitable companies can […]

Quality of EBITDA is more important than quantity of EBITDA to the mezzanine lender. Adjusted EBITDA is the sine qua non in the finance industry, […]