| Purpose and Eligible Deals |
- Use of funds:
acquisition of established operating businesses through share purchase or asset purchase structures.
- Business profile:
profitable targets with positive EBITDA, clear cash conversion, and realistic growth assumptions.
- Buyer types:
search funds, independent sponsors, management teams, corporate buyers, and family offices.
|
| Jurisdictions and Size |
- Locations:
target companies based in the USA, Canada, and EEA member states.
- Deal focus:
control acquisitions and majority recapitalisations in the lower mid market and mid market.
- Sizing:
enterprise value and facility size assessed on a deal by deal basis, with reference to sector, cash flow, collateral, and sponsor profile.
|
| Capital Structure and LTV |
- Facility types:
unitranche facilities or a combination of senior term debt and mezzanine acquisition debt.
- Security package:
share pledge over the target, all assets security where available, and sponsor guarantees as required by lenders.
- Leverage:
indicative loan to value up to 85 percent on qualified transactions, based on cash flow, sector risk, and sponsor quality.
|
| Tenor, Repayment, and Covenants |
- Tenor:
typical facility life from 2 to 7 years, subject to jurisdiction and structure.
- Repayment:
amortising or partially amortising profile with a potential bullet, aligned to free cash flow after capex and taxes.
- Covenants:
focus on leverage, interest cover, fixed charge cover, and minimum liquidity, calibrated to the acquisition plan.
|
| Pricing and Fees |
- Pricing:
set by lenders in line with market for risk, currency, ranking, and capital structure.
- RFQ fee:
USD 500 request for quote fee, credited against our advisory fee when we proceed on the same transaction.
- Advisory fee:
USD 5,000 flat per deal for structuring, credit pack, and lender process management.
- Success fee:
2.5 percent of funded debt, payable at completion, plus any lender, legal, tax, and third party costs.
|
| Process and Conditions |
- Role:
Financely acts as debt advisor and arranger on a best efforts basis, running a targeted process with suitable lenders.
- Execution:
where regulation requires, financings are executed through our broker dealer sponsor and regulated partners.
- Conditions precedent:
full KYC and AML, acceptable diligence, final credit approvals, and signed documentation in agreed form.
|