Mezzanine financing bridges the gap between bank loans and equity investment, offering $1M-$15M in growth capital while preserving 90-98% of ownership. Learn how it works, when it makes sense, key terms, and who provides it.
Archive for the
‘Capital Raising’ Category
A term sheet defines the economics and control of your capital raise. Learn how to read valuation, liquidation preferences, anti-dilution, board composition, and protective provisions — and what to negotiate before you sign.
A minority recapitalization lets you sell 20-49% of your business while keeping control. Learn how the two bites of the apple strategy works, who the buyers are, what you give up, and whether a partial sale is right for your situation.
SBA 7(a) loans are the most common financing tool for business acquisitions in the $500K-$5M range. Learn how they work, what qualifies, equity injection requirements, seller financing rules, and the common mistakes that stall deals in underwriting.
SBA 7(a) loans are the most common way to finance business acquisitions under $5M. Learn how the capital structure works, what lenders evaluate, the seller note standby requirement, and expected timelines.
Raising growth capital doesn’t mean giving up control. Learn how to evaluate debt, equity, mezzanine, and revenue-based financing structures to fund growth while maintaining majority ownership and decision-making authority.
Your banking relationships tell buyers and investors more about your business than you think. Here’s how strategic banking — from working capital to treasury management — affects growth, valuation, and exit readiness for lower middle market companies.
Every capital decision is a trade-off between ownership, control, and risk. Here’s how lower middle market business owners should think about equity vs. debt — and the hybrid approaches that usually make the most sense.