Raise Capital Archives - Financing Gazelles

Merchant Cash Advances (MCA) Deceiving Math

March 29, 2021September 3, 2021 by Jennifer Mooney

Jennifer Mooney

A lender recently told me a story about how entrepreneurs often get deceived by the cost of MCA (Merchant Cash Advances) loans. As an example, one owner recently mentioned he was about to get a $121,000 loan that required the company to pay back $165,000 in 9 months and the company…

Case Study In Growth: Using revenue based financing (RBF) to drive greater growth and enterprise value

October 8, 2019August 31, 2021 by Jennifer Mooney

Jennifer Mooney

A 20 year old software company was working to develop some exciting new products. Management had scoped out its future features and functions and shared their solution concepts with potential customers who showed strong interest. The challenge was it would cost the company $1 million beyond their free cash flow to complete…

Revenue Based Financing: Refinance Your Merchant Cash Advance Loans

February 25, 2019August 31, 2021 by Jennifer Mooney

Jennifer Mooney

Over the years, we have had fast growing companies come to us looking for help both getting new capital and refinancing (out) merchant cash advance loans that they had taken out. In one instance, a company needed to make payroll by the end of the week and had no money in…

The Rise of “Dequity”

August 21, 2018August 27, 2021 by Chris Risey

Chris Risey

Financing Innovation: The Rise of “Dequity” [caption id="attachment_363" align="alignleft" width="225"] The Risey of Dequity[/caption] I was talking with a banker the other day and he used a term that I hadn’t heard before but made a lot of sense. He said, they make ‘dequity’ investments. What he meant was they make loans,…

Acquisition Strategies – Think Small to Go Big

June 27, 2018August 16, 2018 by Chris Risey

Chris Risey

Acquisition Strategies – Think Small to Go Big On several occasions, I have met or worked with entrepreneurs that built valuable businesses by effectively executing several small acquisitions. These companies have been in industries such as staffing, insurance and financial services as well as electronic and light manufacturing. Several of…

Another Exit Planning Option: Sell To Management

March 27, 2018July 12, 2022 by Chris Risey

Chris Risey

Internal Management Buyout: Another Exit Planning Option: Sell to Management The one exit planning strategy that most often gets overlooked is an internal management buyout but it’s an approach that has several advantages that owners should seriously consider. This post is a very short explanation of 1) how an internal…

MBO Management Buyout: PE vs No-PE

February 27, 2018July 12, 2022 by Chris Risey

Chris Risey

MBO Management Buyout: PE vs No-PE I have a client pursuing a MBO management buyout of his company from its public parent. As we assessed different management buyout financing options, he had a big decision to make. Did he want to partner with a private equity firm (PE) or do…

Growing by Acquisition: A key factor that drives successful acquisitions

February 15, 2018August 16, 2018 by Chris Risey

Chris Risey

Growing By Acquisiton: A Key Factor That Drives Successful Acquisitions. When targeting an acquisition it’s pretty easy to get lost in the numbers. After all, financial analysis is critical for acquisition financing, valuing the acquisition and seeing how the Company can add financial or enterprise value to the current business.…

What Drives Up Multiples in Enterprise Value?

February 5, 2018August 27, 2021 by Chris Risey

Chris Risey

Corporate Financial Planning: What Drives up Multiples? Chris Risey Last newsletter, I provided a short (as I could) explanation of how to calculate enterprise value (EV) and why EV is an important topic for internal planning, valuing private company acquisitions, management buyouts and partner buyouts. A common follow-up question I get related to…

Leveraged Buyout Single Buyer – Get Quality Financial Projections!

October 27, 2017March 6, 2018 by Chris Risey

Chris Risey

Leveraged Buyout Single Buyer - Management Buyout Consulting Leveraged Buyout Single Buyer: Provide Multi-Year Financial Projections: Owners of growing companies often get approached by prospective buyers, even when they are not looking to sell. Suddenly, they are faced with a leveraged buyout from a single buyer. But owners that engage…

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