Top 4 Reasons Why Mezzanine Loans Are Great for Acquisition Capital
When you decide to purchase a company, you'll require a loan which perfectly matches your requirements. However, there is usually a dearth of options that fit like a hand in glove. More often than not, the loan conditions are rigid and are not reliable enough from the perspective of acquisition financing. If you look around the market, you’ll find that Mezzanine Finance is the best option available to serve the acquisition financing. Also, since the lending decision is purely dependent on the future earnings that you are expected to raise from your project rather than the previous history, it is further helpful from the borrower’s perspective. Here are the top 4 reasons why mezzanine financing is bound to work better than the other available option. Appreciable capital size: Construction loans are sized according to the multiple of adjusted EBITDA (Earnings before interest, tax, depreciation and amortization- a measure of the company's operative per...