Merger and Acquisition Financing
Deschutes Capital welcomes the opportunity to work with private equity sponsors, investors, buyout groups and corporate acquisition teams to structure and arrange debt financing to acquire a middle market company or commercial assets. We work with equity sponsors, acquisition teams and corporate management to evaluate the assets being acquired and determine an appropriate debt structure and competitive financing rate.
Based on the quality and term structure of balance sheet assets, historical cash flow from operations or EBITDA, future opportunities and current market conditions, Deschutes Capital, along with the respective acquisition team, can determine an appropriate debt structure for the acquisition. With respect to short term assets, an accounts receivable line of credit, working capital line of credit or inventory loan can be tailored to meet your company's specific seasonal and growth needs. For long-term capital investments ( CAPEX ), an asset based financing, cash flow loan, term loan or lease may be appropriate. We can also employ risk management tools, such as, credit insurance and inventory management, when appropriate to increase your company's borrowing capability.
If you are interested in leveraged financing, a short term cash flow subordinated debt financing may be appropriate, subject to the level and stability of historical operating cash flow being sufficient and the debt to income ratio, as well as, debt to equity ratio being acceptable. Additional considerations are the business cycle risk of your industry, seasonality of your business, and credit risk profile and concentration of your company's customer base.
All corporate merger and acquisition financing or asset acquisition financing is subject to current market conditions and the term structure of your company's balance sheet assets, CAPEX and equity; income statement and pro forma operating cash flow or EBITDA.
Types of Merger and Acquisition Financing
Whether obtaining debt financing for short-term assets or for long-term capital investments ( CAPEX ), Deschutes Capital can structure and arrange your debt financing, including:
- working capital revolving lines of credit
- machinery and equipment term loans and leases
- cash flow term loans
- mezzanine / subordinated debt
- commercial real estate loans, and
- bridge loans.
We pride ourselves on integrity, knowledge and relationships to deliver the service you deserve.