Mezzanine financing preparations – first call with mezzanine lenders

Mezzanine financing preparations - first call with mezzanine lenders
Mezzanine financing preparations are a big deal, if you're serious about this business. We probably don’t need to tell you that doing your homework before approaching mezzanine lenders is of HUGE importance. Sure, you still need to meet the investment criteria of mezzanine funds to get the financing in the end. But without the right first impression you might not even get the chance to show the investors that you meet the criteria. Therefore, your preparation for the first call needs to be ro...

How to improve forecasting and guard from unknown unknowns

thinking fast and slow
The Nobel laureate, Daniel Kahneman, and a group of his colleagues caught themselves making a vastly overoptimistic forecast. By asking the right questions they were able to overcome the inwardly focused forecasting approach. This true story is a good reminder for all business decision makers who need to make predictions about the future. Specifically, for mezzanine financing activities it helps those that prepare forecasts to look more from the perspective of mezzanine funds, who will be evalua...

Mezzanine investors pitch – the only 10 slides you need

The only 10 slides you need in a pitch to mezzanine investors
The purpose of a company presentation is to stimulate interest, not to cover every aspect of your business and try to answer every possible question they might have in relation to the funding you are looking for. Your objective is to generate enough interest to get another conference call or a face-to-face meeting. Thus, it is recommended to keep your presentation fairly short (up to about 10 slides). This impossibly low number forces you to focus on the absolute essentials. You can add a ...

Mezzanine financing example uses and investment criteria

Mezzanine financing example and investment criteria - boost your understanding of mezzanine financing
Once you review the definition of mezzanine financing, it is best to get familiar with at least one mezzanine financing example to better understand the concept in practice. Even more so, if you can see a full range of situations in which mezzanine capital is used and the investment criteria typically applied by the investors. Below, we have collected an extensive list of example situations in which mezzanine financing is used. Furthermore, to make it even more relevant, we put it in the cont...

Origin of Mezzanine Financing term – Where does the name come from?

Mezzanine financing definition of the term comes from architecture
The term “mezzanine” comes originally from Italian "mezzanino", which is a diminutive of "mezzano", (meaning middle). This, in turn, comes from Latin "mediānus" (meaning in the middle). The idea of using word "mezzanine" in the world of finance seems to come from architecture. In architecture "mezzanine" means a low-ceilinged story between two main stories of a building, especially, an intermediate story that projects in the form of a balcony. Tracking the origin of the usage of "mezzanine fi...