Scenarios

Business owners need flexible capital in the form of royalty, or "mezzanine," financing, to set their companies up for success. When the investment structure is molded to the business’s natural cycles and rhythms, repayment schedules match revenues and the company grows at a strategic pace, not one dictated by the demands of a capital structure.

Here are a few scenarios.

1. Expansion

Your business has ...

  • Demonstrated financial performance and an opportunity in an adjacent market.
  • Received new orders significantly larger than your historic norm. You need working capital to execute on the contracts.
  • Revenue in each of the past 12 months, totaling more than $500,000 and, although in early stage, is profitable or has a clear path to profitability. You want to pursue a clear growth opportunity by investing in additional sales staff and marketing.

Vested for Growth can offer …

  • Royalty-based financing with a repayment structure based on your success and the pace of your sales growth.
  • Growth capital that is non-dilutive and does not require control, or the need to sell the company in the next three-to-five years.
  • Financing for “soft-costs” like marketing or staff.

2. Ownership transition

You are ...

  • An experienced executive looking to buy a small to mid-size business.
  • Looking to consolidate your company’s market by buying a competitor.
  • Nearing retirement and looking to sell your company.
  • A financial advisor, broker, or investment banker, trying to structure a financing package to help your client buy or sell a business.
  • An equity firm seeking a mezzanine lending partner for a new transaction.

Vested for Growth can offer …

  • Financing that fills capital gaps between bank loans and traditional equity.
  • Financing that covers elements of the transaction that aren’t secured by fixed assets or real estate.
  • Cash that reduces the amount of seller-financing needed to close the deal.
  • Repayment through a combination of debt, royalty, and/or equity warrants that balances risk and reward.

3. Growth following a difficult year

Your business has ...

  • Lost a significant customer and experienced net losses in the recent past. Recovery can be seen in the sales pipeline and elsewhere, and you need working capital to fill new orders.
  • Patented a new technology that is showing early signs of adoption. The business had losses in the recent past as it developed this product, and now needs funding to ramp up production/sales.
  • Replaced a person on your management team who disrupted your culture, leading to sub-par business performance. Now you have a strong growth proposition and need added growth capital.

Vested for Growth can offer ...

  • Risk-adjusted capital solutions that meet your needs and help realign your balance sheets.

To learn about how we add value in any scenario, see our Approach page.