Financing gaps emerge in M&A transactions when the buyer’s financing is not enough. Often bank loan availability shrinks the closer a buyer gets to the closing table. This can happen for a variety of reasons. The collateral exam may turn up some ineligible receivables or inventory. The credit committee at the bank may reduce the advance rates. Read More »
Business Valuation describes the process of determining the value of a company through using a variety of theoretical models. Business valuation can be done on a discrete project basis or can be part of a larger process such as raising financing or acquiring a company. In the latter, the business valuation is implicit in the transaction which is to say that the lenders are simultaneously valuing the companies as part of their overall financial evaluation. Read More »
Mezzanine financing, which has been around for the past 30 years, is becoming increasingly popular in European markets.As in the US, private equity investors in Europe are turning to mezzanine financing as a potential source of capital in financing their acquisitions and recapitalizations, management and leveraged buyouts, as well as to provide a funding source for growth capital. Read More »
Whether it used for facilitating liquidity for wealth diversification or succession purposes, for pursuing acquisitions, or for funding organic growth, mezzanine loans have become an effective source of financing for companies in the middle market sector. Filling in the niche created by the reduced availability of traditional senior bank credit and the reluctance of banks to lend under lenient terms and low rates, Read More »
A Funding Platform is a mechanism that provides an integrated solution to raising capital. Raising capital is a multi-step process that requires connections, expertise and relationships. A funding platform represents a more efficient way for a company to secure capital in that all of the required elements to be successful are present. Read More »
Subordinated debt describes a loan that is in a subordinated position to another loan in a company’s capital structure. Often this loan is characterized by being in second position to a bank loan. Bank loans are usually always secured by assets and in the first position with respect to a first lien on assets. Read More »
As a company grows and experiences success, 
additional capital is often required for expansion or acquisition. In searching ways for raising capital, middle market companies have to consider a number of elements that determine the nature of the loan. This includes factors such as cost of funds, level of availability of capital, degree of risk assumed by the lender, Read More »