What’s your EBITDA?

What’s your EBITDA? When I give speeches I like to wrap up the presentation by doing a group exercise where the participants have to look at a simple set of financial statements and calculate a Company’s EBITDA (earnings before taxes depreciation and amortization). This is the most commonly used financial short hand for understanding the operating cash flows a company generates. What’s interesting is many business owners and CEOs have a tough time calculating EBITDA. Many go back through their the notes from my presentation to look up the formula. What this tells me is many owners and CEOs of […]

How Do You and Your Team Use Corporate Financial Planning?

Corporate Financial Planning:  How Do You and Your Team Use Corporate Financial Planning?   Do you have a financial planning process that improves your business planning process?  There are numerous ways to apply corporate financial planning to drive more growth and value in your business. If you want help or ideas about that, give us a call.  We’d be happy to share with you some effective planning techniques and/or help you implement them. Corporate Financial Planning Management Buyouts Lantern Capital Advisors helps growing companies find the financing solutions to fund management buyouts while keeping management in control and preserve and/or […]

Financing Challenges: How We Helped a Client Buy His Division From The Owner

Management Buyout Financing Challenges:  How Lantern Capital Advisors helped a client buy his division from the owner. Situation:  A divisional manager wanted to buy his division from the owner who was having financing challenges with the bank. How Lantern Capital Advisors helped execute the management buyout: Lantern helped the manager negotiate the purchase price and terms of the management buyout and secure $7 million to finance it (management buyout financing).  As part of the transaction, this division was spun out into a separate entity.  The manager invested $200,000 and received a 25% ownership stake in the new Company.   If the […]

Growth and Liquidity Financing: How We Helped a Client Fund Faster Growth and Take Capital Out of Business

Growth Capital and Liquidity Financing:  How Lantern Capital Advisors helped a client fund faster growth and take capital out of the business. Situation:  Owners of a growing software and services company were interested to explore financing alternatives to fund faster growth as well as take capital out of the business. How Lantern Capital Advisors helped secure growth capital financing:  Lantern helped the company secure a variety of financing alternatives that ranged from bank debt financing of $3 million (without personal guarantees) to a variety of specialty debt and equity financing solutions that ranged from $5 million to $25 million. What our […]

Owner Exit Strategies

Owners of businesses typically dream of going public or performing an IPO, even though less than 1% of businesses ever achieve this.  However, for the remaining 99% of businesses out there, there are multiple viable options that owners should consider and evaluate when determining their business exit strategy.   Ideally, owners should plan for their owner liquidity event at least five years in advance of their “target date”.  However, sometimes an opportunity appears unexpectedly, and Lantern is called to rapidly evaluate the opportunity and the assist our clients in negotiating next steps.   Some strategies and alternatives that Lantern Capital Advisors has helped […]

Failure Is Not An Option

If you haven’t seen the ad by Chrysler featuring Enimem, well, we want to share it with you, provided that You Tube doesn’t take it down… What does your company know about luxury? The finest things in life. Especially when the questions are asked by someone that has never set foot in your business, in your world, in your shoes, in your town. The hottest fires make the hardest steel. What does your company know about being successful, especially when the talking heads swear that the sky is falling, and that there won’t possibly be anyone left to buy what […]

When Is The Right Time To Sell Your Business?

One of my favorite shows is “The Office”, I’ll leave the humor out of this post, but the show only exists because the original creators took a chance at producing “something new”. Does anyone even care or know what they did before? What made Simon Cowell so famous in the United States was not producing Teletubbies, but telling contestants the truth on the hit show, American Idol. He’s onto something new now, and we’ll probably all take some time to watch. Business is picking up. Things are looking good. Your sales team has really delivered. But you wonder, is now […]

Weekly What If: What If We Consolidate On Our Own?

The Weekly What If…Chronicling companies that transformed their business by Exploring What if  Today’s biggest boat retailer was organized around this What If.  Today, Marine Max is America’ largest boating and yachting retailer with over 50 locations in 19 states.   In 2004, I interviewed company, CEO and Chairman Bill McGill and was surprised to learn more about their history.  Mr. McGill, an engineer by background, owned and ran a successful single location boat dealership in St. Petersburg Florida. In 1997, Mr. McGill and a handful of other successful dealers were approached by a private equity firm that pitched the idea of consolidating their […]

Investment Banking Fees Vs. Consulting Fees

Investment bankers typically raise capital using one of two formulas.  These formulas are referred to as the Lehman Formula, or Double Lehman Formula, and are calculated via the incremental dollar value of the capital raise – typically a percentage descending from 5-10% for the first five million, and thereafter a 1-2% percentage of the remaining capital raise. The first million dollars raised using a “finder”, “investment banker”, “broker” is 5%-10%, the second million dollars raised is 4%-8%, the third million dollars is 3%-6%, the fourth million dollars is 2%-4%, and the fifth million and beyond is 1%-2% of the capital raise.  […]

What If We Eliminate Late Fees?

The Weekly What If…Chronicling companies that transformed their business by Exploring What if Praised for its clever business model, it was really this What if that started its massive growth.  Based on its market value and number of customers, there is a good chance you use, Netflix. I do. Their mail order driven business model kicked Blockbuster’s drive up business to the curb! Since its meteoric rise the company has garnered a huge valuation and the esteem of strategic thinkers like the authors of the Blue Ocean Strategy for its ability to take a completely new approach to video delivery. […]