1. Structure the optimal deal and minimize the equity give-up to our Clients.
| Client 1 | Problem | Resolution |
|---|---|---|
| Small, profitable business service company that was pursuing venture capital to fund acquisition growth. | Venture capital is the most expensive form of capital. We felt that they were beyond the venture phase and that we could structure mezzanine debt for them which is approximately 50% less costly than venture capital. | Within 3 weeks of engagement, we identified several mezzanine lenders who were willing to provide 75% more capital and take 60% less equity than the venture capitalists. Our ability to present the mezzanine structure in terms of a run rate of EBITDA and the acquisitions as part of the company on a proforma basis made a huge difference. |
| Client 2 | Problem | Resolution |
|---|---|---|
| Minority equity owner of a distribution company needed money to buy out the controlling shareholder in a management buy-out. He had no personal money to put in the deal. | Typically, private equity is used to fund a management buy-out. This results in the equity investor owning 50% plus of the equity in the company and with a controlling position. | Within one month of engagement, we identified a mezzanine lender who was willing to fund the buy-out and take 60% less equity than a private equity investor would. Our ability to present the business on a pro-forma basis with significant growth potential made a huge difference in accessing this capital. |
2. Present the best story for the company and create investor enthusiasm for the deal
| Client 3 | Problem | Resolution |
|---|---|---|
| Non-traditional specialty retail business that was opening new stores and making acquisitions. The business owner had tried to raise capital for 3 months on his own with no success. | Investors were ucomfortable with the business and many just dismissed it outright as an area they would not touch. | We used our presentation tools to explain this business in way that investors would more easily relate to it. We restructured the transaction to make it less risky. Within one month, we identified several mezzanine lenders for the company. |
3. Leverage our investor relationship network and rapidly, create value for our clients.
| Client 4 | Problem | Resolution |
|---|---|---|
| Lighting technology company that was under-capitalized. The company had a great new technology but lacked capital to commercialize it. | The company had unsuccessfully tried to raise capital on its own for about 1 year. The owners were contemplating liquidation. | We used our business model presentation framework to explain the high growth potential of the business. We introduced the company to venture group that closed on the deal within 3 months. |
| Client 5 | Problem | Resolution |
|---|---|---|
| A UK company was making an acquisition of its reseller in the United States. The US Company was larger than the acquiring company. The owner lacked any capital to put into the deal. | Traditionally, this type of acquisition would be funded in part with equity due to the acquiring party lacking the debt capacity to fully finance it. | Through proforma presentation of the combined companies we were able to structure the whole deal as debt. Through using our business model presentation format and extensive relationships, we were able to drive significant mezzanine lender interest in the deal resulting in a very small equity give up to the owner. |