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Many providers of mezzanine capital require the presence of
a large, well funded equity sponsor to participate in a
transaction. Merit has no such requirements, working with
small funds, unfunded sponsors, and often directly with
management teams.
Key benefits of using mezzanine debt in conjunction with a
Sponsorless Buyout include the following:
- Merit is able to provide equity along with its
subordinated debt. This allows the sponsor to work with
just one junior capital provider and still achieve a
capital structure with the most efficient cost of
capital.
- Our experienced team of investment professionals provides
additional manpower and assistance in the labor
intensive due diligence and closing processes which can
be crucial in the short time-frames often dictated by
these situations.
- Partnering with Merit enables the management team to
achieve a more meaningful ownership position in relation
to their cash investment and a greater say in the future
of the company than would be possible relative to
partnering with a pure equity fund.
- Management will retain operating control of the
company as we are not interested in managing the
day-to-day operations of the company, but instead prefer
to work as a board level advisor to help grow the
business.
Merit has provided financing to support a number of
unsponsored transactions. For further detail on specific
examples, click on the case studies below:
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