January 3, 2024
Cash Flow Deal? Business Acquisition?
Solution for Lenders: Mezzanine Capital $1 Million to $5 Million throughout New England.
If you’re looking at a cash flow deal or an ownership change deal (partner buyout, succession planning, management buyout, or an industry consolidation) that has strong cash flow but insufficient collateral, give us a call at BDC Capital. We are here to help bankers get deals done with an array of highly flexible programs.
MB Capital, an affiliate of BDC Capital, invests mezzanine capital from $1 million to $5 million in companies in New England that require additional capital outside of conventional debt or equity financing channels. This financing is typically utilized where there are strong prospects for company growth, expansion capital, management transitions or acquisitions.
MB Capital looks to identify exceptional mezzanine investment opportunities by targeting companies with the following attributes:
- Solid management team with demonstrated record of performance, experience, and integrity
- Management team with a significant equity stake
- Defensible market position or proprietary technology
- Annual sales of $7.5 million or more
- Positive cash flow
- Significant growth potential
- Sufficient resources to service debt and provide collateral
MB Capital investments are uniquely structured to match the needs of the borrower. A typical structure would include a subordinated note with an interest-only period and may include warrants, a royalty, or payment-in-kind interest.
Typical situations where MB Capital financing is applicable include:
- Strategic acquisitions
- Buyouts by internal or external management teams
- Recapitalizations to provide shareholder liquidity or inter-generational wealth transfer
- Patient capital to support growth
- Equipment and owner occupied real estate purchases
- Insufficient collateral for additional bank financing
Contact us to discuss a deal!
ABOUT BDC CAPITAL:
The oldest business development corporation in the United States, BDC Capital has been recognized locally and nationally as a leader and innovator in business lending and capital investment. More than 30 of New England’s leading financial institutions invest in BDC to help promising companies expand. Since our creation in 1953, we have invested more than $1 billion in thousands of companies in New England.
Whether the need is $500,000 or $5 million, BDC Capital provides a wide range of financing solutions. We offer asset-based lines of credit, senior debt, junior secured debt, mezzanine investments and private equity options, all of which are customized to suit the needs of a business.
Our affiliate, CDC New England, provides SBA 504 loans for owner-occupied real estate and equipment.
For more information, visit our web site, call us at 781-928-1100, or contact:
Carol C. Brennan