Tag

earnout

2 insights

Five horizontal bars of new money available to the same food manufacturer: a revolver increase at $800,000, an asset-based refinance at $1.4 million net, a cash-flow term loan at $2.8 million, structured junior capital at $4.0 million and an equipment sale-leaseback at $4.1 million, against a $4.0 million obligation due in 90 days.

Financing an Obligation Instead of an Asset

A food manufacturer owes $4 million in 90 days with nothing new to show for it. Five funding routes against the same balance sheet produce $800,000 to $4.1 million, and only two of them close in time.

Financing Strategy Borrower Advisory

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 Strategy Borrower Advisory

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