As a business owner or financial sponsor, mezzanine financing can come in handy when there's a capital gap between what a senior lender will provide and the total capital need.
Whether it's being used for a management buyout, to fund rapid growth, or pay the shareholders a healthy dividend, mezzanine financing is a growth capital option that's become increasingly prevalent in middle market and lower middle market companies.
As non-bank financing alternatives for small to medium size companies get more sophisticated and more prevalent, understanding how and when to use mezzanine financing will serve you well as you grow your business and ultimately realize the value you've created.
The Growth Capital Guide: Leveraging Mezzanine Financing for Growth will cover:
- What Mezzanine Debt is
- An Example of Mezzanine Financing
- When to Use it
- Common Structures
- What Mezzanine Lenders Look For
- Pros: Benefits of Mezzanine Financing
- Cons: What to Watch Out For
- The Mezzanine Financing Landscape
- Raising Mezzanine Debt: Best Practices