Financing Options

Financing Structure

Capital creates options and drives growth and acquisition.

If you are growing through acquisitions, VR Mergers & Acquisitions can help you develop an effective financing strategy, determine the most beneficial transaction structure, and secure the capital necessary to fulfill your financial and strategic objectives.

With over 35 years of experience, knowledge, and relationships necessary to access capital for acquisitions, leveraged buyouts, debt refinancing, and expansion, VR can present financing options that align with the needs of every client.

VR professionals can help facilitate the following financing alternatives:

Asset Based Lending: From $250,000 to $15 Million. Asset-based loans are secured by a company’s accounts receivable, inventory, equipment, and/or real estate. As an alternative to traditional bank lending, asset-based loans are used for working capital, acquisitions, turnaround financing, capital expenditures, buyouts and restructuring.

Leveraged Acquisitions and Buyouts: From $2 Million to $20 Million. The acquisition of another company using a significant amount of borrowed money to meet the cost of acquisition. Often, the assets of the company being acquired are used as collateral for the loans in addition to the assets of the acquiring company. The purpose of leveraged buyouts is to allow companies to make large acquisitions without having to commit a lot of capital.

Mezzanine Financing: From $1 Million to $10 Million. Mezzanine or Bridge Financing is a hybrid form of capital fitting somewhere between senior bank debt and equity on the balance sheet. Structurally, it is “junior debt” and is typically used to fund growth opportunities such as expansions, new plant equipment, and acquisitions. Terms tend to range from 3-5 years for repayment and generally require interest only payments.

SBA Financing: Up to $2 Million. SBA Loans are designed for small businesses when alternative channels for financing are not available. While the loans are provided by the private sector (approved lenders), SBA loans are guaranteed by the US Government. SBA financing can be used to acquire real estate, machinery, equipment, and expansion of the business.

Along with these forms of Financing Structures your VR intermediary can also assist you with:

  • Conventional Business Loans: Up to $22 Million
  • Seller Promissory Notes: Secured by the business
  • Personal Unsecured Loans: Based on credit history
  • Business Line of Credit: Dependent on business history
  • Commercial Property Loans: Secured by real estate purchased
  • Private Equity Groups: Providing money for recapitalization
  • Private Placement Offering: Raising capital from private investors
  • Short Term Promissory Notes: Raises debt for business development
  • Employee Stock Ownership Plans: Vehicle for employee ownership

To meet the demands of our clients, VR Mergers & Acquisitions has access to many developed specialized skills and innovative financing products for businesses seeking strategic acquisitions to financial buyers executing leveraged buy-outs.

Are you ready to learn more?

Valued Representation by your VR Intermediary will include exploring these and other types of favorable financing options available to you as a qualified buyer.

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