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Capital Raise Blog Series - Vol 10 - What Is Venture Debt?

RKJ Partners

Venture Debt is less expensive than equity … in the long run Perhaps the greatest benefit of venture lending is that it injects money into a business without heavily diluting the equity stake of the entrepreneur or venture capital investors. Fees overload – The true cost of debt is often increased by the inclusion of numerous fees.

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Capital Raise Blog Series - Vol 9 - Types of Capital (Senior Debt & Mezzanine Capital)

RKJ Partners

Capital is generally grouped into three main classifications: Senior Debt, Mezzanine Capital and Equity Capital. Most entrepreneurs are very familiar with senior debt offered by traditional banks. Senior debt is first in seniority and is often secured by collateral in the form of a lien.

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12 Concepts We Can Learn About M&A Deals and Attorneys From How2Exit's Interview Mathew Saur

How2Exit

His advisory practice helps them through catalytic, transformational, and strategic events, such as mergers and acquisitions, governance issues, capital raising, and disputes. For example, one of the most popular industries for leverage debt for multiple expansion is the collision repair industry.

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How much equity should you give away when taking investment for growth?

Growth Business

To determine the value of the shares specifically, you need to adjust for the debt and cash in the business. Where you end up in the range (or if you are on outlier outside that) depends on the nuances of your business and the investment process you are running.

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The essential guide to raising private equity

Growth Business

Capital is available, valuations have started to normalise and the debt markets are still supportive – albeit with greater scrutiny and higher costs. From the outset the Bridges and Innovate teams had a good rapport, and we talked a lot together before entering into detailed negotiations.

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11 Concepts We Can Learn About Chocolate, Roll-Ups, and Successful Exits From How2Exit's Interview W/ Gia Cilento and Walid Costandi

How2Exit

They stress the need to clearly communicate expectations from the beginning of negotiations, avoiding surprises later on. Finally, the guests discuss the current market trends in private equity and capital raising. One of the reasons for the deal's failure was the owner's belief that the business couldn't run without her.

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