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Jeffrey Sweeney is an investment banker with years of experience in direct lending and corporate finance for small- to middle-market companies. He is the chairman and CEO of US Capital Partners, an innovator in small- to middle-market business lending. US Capital Partners has been providing prompt, innovative, and reliable financing solutions across the United States and abroad for more than a decade.

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Wednesday
Aug172016

Intelligently Structured Financing for Your Business Acquisition

CEOs in the US are showing increased interest in growth through acquisitions. Find out how US Capital Partners Inc. can provide your company with the custom acquisition financing it needs to grow.

Please click to see North America mid-market sector breakdown YTD 2016 Over the past year, buy-side interest in mid-market mergers and acquisitions (M&A) in North America has been at an all-time high. Mid-market firms are becoming increasingly sophisticated, helping them compete on a level with bigger companies. Increasingly, smaller businesses have been viewing M&A as a strategic route to growth. Many such enterprises are pursuing add-on acquisitions to develop complementary products and product lines, create new distribution channels, or open up new markets.

Financing Your Business Acquisition

Acquiring a business can be a complex undertaking, especially for a smaller firm, and often requires multiple sources of financing. Generally, there are three basic ways, other than cash, to finance your acquisition and grow your business to the next level:

  1. Loans against specific business assets
    An acquisition often involves the purchase of new business assets, such as buildings or equipment. Since 1998, US Capital Partners has been providing asset-backed loans of $500,000 to $100 million to finance acquisitions and other growth initiatives. Assets that qualify for such loans include accounts receivable, inventory, purchase orders, real estate, machinery and equipment, and even intellectual property.
  2. Loans against cash-flow and enterprise value
    US Capital Partners offers growth-capital term loans of up to $100 million. Businesses with a competitive advantage in a fast-growing industry can consider subordinate financing, which may lead to higher loan amounts. Unlike conventional bank loans, this formula allows flexible repayment terms.
  3. Equity financing
    US Capital Partners, through its registered affiliate US Capital Global Securities, Inc., also participates in and has wide distribution for private placements of equity to meet a variety of growth objectives, including funding add-on acquisitions. In raising private equity capital, US Capital Global Securities always make sure the deal structure is appropriate for a client’s specific needs.

Customizing Your Acquisition Financing

Often, the best financing solution for a company is an intelligently structured mix of cash (if available) and debt, with some equity. US Capital Partners can, for instance, structure and provide an optimal combination of a growth-capital term loan together with some equity financing. This offers a minimally dilutive option to a straight equity raise, allowing you to retain greater ownership of your business.

If you are currently engaged with or aware of a business that is seeking acquisition financing, please email Jeffrey Sweeney, Chairman and CEO, at jsweeney@uscapitalpartners.net or call (415) 889-1010.

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