Tag

deal structure

3 insights

A grid of 100 squares representing a $7.5 million senior facility at $75,000 each. Thirty-five squares are shaded dark to show the $2.63 million covered by a guarantee capped at 35 percent of the facility, against an unlimited guarantee that covers all 100.

Who Signs Personally, and for What

A contractor financing a $12 million acquisition can sign an unlimited guarantee, a guarantee capped at 35 percent of the facility, or none at all. The structures differ by millions of dollars of personal exposure and by about 250 basis points.
Financing StrategyBorrower Advisory
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A hundred-square waffle showing the total cash a $12 million acquisition consumes in its first six months: 47 squares funded by the acquisition term facility, 44 by buyer equity at close, and 9 by a working capital build that sits outside the deal model.

You Financed the Price. Nobody Financed the Working Capital.

A buyer models an acquisition as price minus debt equals equity. Then the working capital true-up lands, and the seasonal build after it. The cash required is the same whichever month the deal closes, and the acquisition facility funds none of it.
Financing StrategyBorrower Advisory
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Three small stacked columns funding the same $18 million purchase price, showing buyer equity at close of $9 million on an all-cash deal, $5 million when the seller note pays current interest, and $3 million when the seller note sits on full standby.

Same $18M Price. Three Different Equity Requirements.

Two buyers agree the same $18 million price for the same business. Depending on how the deferred consideration is structured, the cash the buyer needs at close is $9 million, $5 million, or $3 million. The price never changed.
Financing StrategyBorrower Advisory
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