To conduct a successful M&A Transaction, deep Due Diligence is not only required but the key to success. Any Broker, whether a bank or consulting firm, is not your “Friend” as they act on behalf of the seller. This probably creates a conflict of interest as a Broker-Fee is based upon the sales price. And you do not want to pay more than a fair market value. We do not have only the tools for benchmarking; we have vast experience if it comes to enhanced Due Diligence.
Hence, we embedded deep Due Diligence, Compliance, international Tax Consulting and Legal Advisory into our workflow of M&A Transactions, making sure achieving the best results for our valued clients. There is no doubt that anybody who has an interest in buying a firm should speak to us first. Not just for the sake of a safe transaction but also for a realistic purchase price.
Range of Funding for M&A Transactions
We offer dedicated advice for M&A transactions of small and mid-sized SME’s (mainly via Management-buy-in /MBI’s). Furthermore, Rialto Corporate Finance offers tailor-made and cost-efficient funding solutions as well as innovative concepts that are optimized to the needs of your company. Whether Venture Capital, Venture Debt, Private Equity or other funding sources – we are your trusted partner.
We are here to help you to find out more about the opportunity to raise funds for your M&A transactions through bank funding and venture capital in the jurisdiction of your choice (in Europe). We will assess whether your idea is feasible or not and advise you on how to amend your plans to get moving.
Mezzanine Capital is a loan facility (loan instrument) that ranks between senior debt facilities (usually bank loans) and equity in the capital structure of a company and shares characteristics of both. It is often used in situations where bank financing is not adequately available, thus replacing part of the need for equity.
Mezzanine Capital can be structured either as a debt (legally or structurally subordinated), or preferred stock. It is typically materially unsecured by assets, does not require a personal guarantee (non-recourse loan), and is provided against the cash flow based on the borrower’s performance.
By that nature, Mezzanine Debt carries significantly more risk than senior debt and is priced accordingly. In most cases pricing consists of two components; (i) regularly paid cash interests, and (ii) PIK interests (payment-in-kind interest being a capitalized interest component payable at loan maturity). In some cases, Mezzanine providers may take a small equity warrant (kicker) in the business.
Usually, Mezzanine Debt is structured on EBITDA multiple bases i.e. with higher leverage (Net Debt/EBITDA ratio) than senior loans, and its maturity is usually extended beyond the senior facilities with a bullet repayment profile.
Mezzanine Debt is a flexible, long-term source of financing that can accelerate corporate growth and build long-term value.
- Expand business and/or invest into new technology
- Finance an acquisition (M&A Transactions)
- Optimize capital structure and the risk profile of the business
- Recapitalize
- Change the ownership structure
- Bridge the interim cash shortfall
- Acquire distressed assets (for business purposes)
- Finance a turnaround process
Whether it is used as part of acquisition debt, growth capital funding, bank refinancing or owner buy-out; financing using Mezzanine Capital can deliver high value.
Our Funding Solutions
Bespoke Project Finance
No project is like another and therefore requires an individual approach. We offer just that – an assessment of each and any project to find a scalable funding solution according to needs.
Start-Up Crowd Funding
Crowd Funding might be an interesting alternative to raise the capital much needed. We offer sophisticated and bespoke solutions to our customers at reasonable, flexible terms and conditions to highly competitive rates.
ICO & STO Funding for Start-Ups
This modern way of funding has been all over the media in recent years. Find out if your project is suitable for such a funding solution. With us, you can rely on expert advice and years of experience to successfully implement your project.
Start-Up Finance - Asset Based
Some Start-Ups require smaller amounts of funding and have some kind of assets available, that might be used as collateral. Or they just need technical equipment, we may finance through a Leasing or Hire Purchase contract.