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Monday, November 5, 2012
With increasing appeal to investors, Integrated Funding modeling is becoming a particularly interesting topic.
Andice Integrated Funding (AIF) employs a generalist, diversified strategy of investing across a variety of industries with a focus on the lower-middle-market, investing in companies in the United States and Canada with revenues ranging from $5MM - $50MM.
What is Integrated Funding?
Integrated Funding is a unique mezzanine style of subordinated lending that mixes debt and equity. The debt component usually comes with interest rates of 12%-16% for a typical life of 4-6 years. Unlike most senior debt lender and banks, these interest rates do not typically fluctuate with prime and/or LIBOR rates. Integrated Funding is a hybrid of debt and equity, making it quite flexible. The flexibility enables it to be used in a variety of situations — including buyouts, corporate takeovers, mergers, acquisitions, growth capital, or recapitalizations.”
Intergrated Funding is currently on solid footing – it is a vibrant market opportunity. Demand and supply are both very high as a result of banks being half aggressive and half scared, it’s a good time to get deals done.
How does AIF Value Companies?
We share much of the same due diligence criteria as equity lenders. There are multiple factors that contribute to the attractiveness of an opportunity. In addition to the use of proceeds, amount of proceeds, type of transaction, and so on, we like to look at the management team and its past experience with leverage, very much akin to what an equity investor looks for in a business — a scalable business model, recurring revenue, and strong EBITDA margins.
What are the Benefits of AIF?
One of the biggest benefits of AIF is our partner-like mindset and significantly less dilution to the borrower as opposed to a direct equity investment. AIF is more like a private equity firm than a bank. We are a lender by design, and our capital network is deployed as debt, but we think more like a partner than a lender. We work extensively to help our client ompanies through our network and the resources that we can bring to bear. Because of the structure and the equity element of our royalty lending, we are very motivated to see the equity value of the company increase.
For more information visit as at www.andicefunding.com.
What is Integrated Funding?
Integrated Funding is a unique mezzanine style of subordinated lending that mixes debt and equity. The debt component usually comes with interest rates of 12%-16% for a typical life of 4-6 years. Unlike most senior debt lender and banks, these interest rates do not typically fluctuate with prime and/or LIBOR rates. Integrated Funding is a hybrid of debt and equity, making it quite flexible. The flexibility enables it to be used in a variety of situations — including buyouts, corporate takeovers, mergers, acquisitions, growth capital, or recapitalizations.”
Intergrated Funding is currently on solid footing – it is a vibrant market opportunity. Demand and supply are both very high as a result of banks being half aggressive and half scared, it’s a good time to get deals done.
How does AIF Value Companies?
We share much of the same due diligence criteria as equity lenders. There are multiple factors that contribute to the attractiveness of an opportunity. In addition to the use of proceeds, amount of proceeds, type of transaction, and so on, we like to look at the management team and its past experience with leverage, very much akin to what an equity investor looks for in a business — a scalable business model, recurring revenue, and strong EBITDA margins.
What are the Benefits of AIF?
One of the biggest benefits of AIF is our partner-like mindset and significantly less dilution to the borrower as opposed to a direct equity investment. AIF is more like a private equity firm than a bank. We are a lender by design, and our capital network is deployed as debt, but we think more like a partner than a lender. We work extensively to help our client ompanies through our network and the resources that we can bring to bear. Because of the structure and the equity element of our royalty lending, we are very motivated to see the equity value of the company increase.
For more information visit as at www.andicefunding.com.
Tuesday, October 9, 2012
Thursday, August 30, 2012
The Post-Labor Day Boom
Monday is Labor Day and that means two things: the end of summer and the beginning of the busiest period for the PE industry. It’s time for the inevitable post-Labor Day boom. Although everyone knows it exists, we decided to try to quantify the boom. How much does deal activity actually pick up after Labor Day?
To investigate, we dove into the data from 2011. We looked at deal activity on AxialMarket a month before and two months after the holiday. The rumors are confirmed - the number of deals brought to market the week after Labor Day increased 20% compared to the week before. The second week back saw dealflow increase another 47%. By the second week in October, the weekly deal number (and presumably your workload) was nearly 3x larger than any week in August.
To investigate, we dove into the data from 2011. We looked at deal activity on AxialMarket a month before and two months after the holiday. The rumors are confirmed - the number of deals brought to market the week after Labor Day increased 20% compared to the week before. The second week back saw dealflow increase another 47%. By the second week in October, the weekly deal number (and presumably your workload) was nearly 3x larger than any week in August.
Looks like a busy couple of months ahead - hope you’re well rested. Enjoy the weekend and see you back in the market next week!
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