Capital Options - Mezzanine Debt Lenders
Company Added
Company Removed
Apply to Request List

Capital Options - Mezzanine Debt Lenders

Capital Options - Mezzanine Debt Lenders

Established franchisees have seen financing and capitalization alternatives blossom during the past few years. Traditional capital using straight senior financing and embedded equity or external equity capital has evolved to become only one of many alternatives for companies looking to grow.

But it's important for franchisees to have a firm understanding of their business's goals and growth strategies, including generic growth plans, remodeling projects (required and elective), and opportunities to expand through acquisitions, says Carty Davis, a boutique investment bank partner who has completed hundreds of transactions in the multi-unit franchise and restaurant space.

He recently wrote about the importance of understanding the differences between the various types of lenders and capital providers and how to pinpoint the ones that might work best. Here's what he says about one type of capital provider:

  • Mezzanine debt lenders can fill a gap if there is a difference between the level of equity and the level of debt a senior lender is willing to advance. Typically, mezzanine lenders have a minimum loan requirement of $10 million and expect a low to mid-double-digit return. Warrants are also sometimes included. Mezzanine facilities have become less relevant as unitranche lenders can typically provide a less expensive and simpler alternative by combining senior and mezzanine facilities.
Published: August 20th, 2019

Share this Feature

California Tortilla
SPONSORED CONTENT
California Tortilla
SPONSORED CONTENT
California Tortilla
SPONSORED CONTENT

Recommended Reading:

Comments:

comments powered by Disqus
RedBrick Pizza
SPONSORED CONTENT

FRANCHISE TOPICS

Meineke Car Care Centers
SPONSORED CONTENT
Conferences
Hotel Savoyen, Vienna, Austria
JAN 28-29TH, 2020

PJ's Coffee is expanding and we are looking for passionate and motivated entrepreneurs to join our winning team.
Cash Required:
$100,000
Request Info
Filta made the market for environmental kitchen solutions. Their affordable franchise start-up fees and their completely new improved line of upsell...
Cash Required:
$94,900
Request Info

Share This Page

Subscribe to Multi-Unit Franchisee Report

A Franchise Update Media Production
Franchise Update Media
P.O. Box 20547
San Jose, CA 95160
PH. (408) 402-5681
In Loving Memory Of Timothy Gardner (1987-2014)

Copyright © 2001 - 2020.
All Rights Reserved.