Take the Mezzanine to the Big House

Michigan Stadium is the largest football stadium in the country with a capacity of 115,109. It is a structure so large, that upon entry, a person’s normal sense of perception becomes a bit distorted.

The Big House is hallowed ground, steeped in Big 10 legend and lore. Every home game is a force of nature, as more than 100,000 fans clad in Maize and Blue migrate across Ann Arbor.

While indeed just a structure, its sheer size creates a mystique around the Michigan brand, cementing Michigan’s mythological status in college football history. Interestingly, the Big House did not become big overnight.

Today’s Big House is the culmination of a long term growth plan hatched by legendary Fielding Yost in 1927. He envisioned the possibility of a seating capacity of 150,000 in 1927, a far reaching thought at the time.

This level of long range planning seems almost absurd in today’s day and age, particularly where stadiums can become obsolete after 20 or 30 years. Yet Fielding Yost somehow realized back in the early days of college football that stadium size would be a key differentiator.

He knew he had a great product and a loyal fan base, and he foresaw the day where the fan base would explode and more room would be needed. This bit of history is analogous to the growth of any middle market growth company.

It their product is good, as more people become fans, there is a need for more production. The owner may have started the business on a shoe string, and couldn’t afford to set it up the way Fielding Yost did for long term scalability.

As growth accelerates, they must transition from small footprint to large footprint, and need to invest significant capital. Whatever the challenge may be, mezzanine lenders are a great choice to help you build scale in your business for expansion.

Much like Fielding Yost was able to see far into the future, mezzanine lenders have a long term horizon, and the ability to see market demand far into the future. Because they understand cash flow and projected growth, they bring the mindset of a long term builder to your company.

They relate to the competitive need to have the best product on the field and the largest stadium capacity amongst your competitors. They even understand the importance of the marketing side of your business, the need for the best cheerleaders and marching band performers to rally your customer demand.

As patient capital providers, mezzanine will give you time and space needed to erect your own Big House of growth.