Alternative Financing Options in M&A: Seller Notes, Asset-Backed, Mezzanine, Joint Ventures, Private Equity
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will discuss alternative methods of financing acquisitions when traditional bank lending is unavailable or insufficient to consummate the transaction. The panel will examine the legal and structuring issues associated with alternative financing, including seller financing, convertible subordinated debt, mezzanine debt, asset-backed financing, joint ventures, and the relationship of these financing methods to each other in the capital structure.
- Traditional financing of M&A: equity and senior bank debt
- Strategic vs. financial sponsors
- Alternatives to senior bank debt
- Seller financing
- Asset-backed loans
- Subordinated debt and mezzanine financing
- Private equity's role
- Issues to consider when combining different modes of financing
- Joint venture as an alternative to acquisition for the strategic sponsor
The panel will review these and other critical issues:
- What are the current options available for financing private company acquisitions?
- When might a target be amenable to accepting seller financing, and where does the seller note fit within the rest of the capital structure?
- What type of target company would be a good candidate for an asset-backed loan, and what are the risks to the purchaser?
- What are the advantages and disadvantages of mezzanine and subordinated debt financing--to the lender and the borrower?
Mr. Coogan represents private equity, venture capital, and other investment firms--as well as privately held... | Read More
Mr. Coogan represents private equity, venture capital, and other investment firms--as well as privately held companies--in mergers and acquisitions, securities offerings, venture capital financings, and the establishment of startup and emerging businesses. His clients invest in and operate enterprises spanning a range of industries, including technology, manufacturing, business services, consumer products, and health care. He also works with institutional investors in the purchase, sale, financing, and operation of their portfolio companies. As outside general counsel to private companies, Mr. Coogan advises on legal and business matters, such as regulatory matters, entity formation, corporate governance, capitalization, equity compensation, capital raising, and customer or vendor contracts.Close
Nanette C. Heide
Ms. Heide is Co-Chair of the firm’s Private Equity Division and team lead of the firmwide Private Equity Industry... | Read More
Ms. Heide is Co-Chair of the firm’s Private Equity Division and team lead of the firmwide Private Equity Industry Group. Ms. Heide has significant experience handling complex transactions and providing general corporate counseling. She regularly represents private equity and venture capital investors, multinational and domestic corporations (public and private) in a wide spectrum of corporate finance transactions, including private equity and venture capital investments, mergers and acquisitions, institutional private placements, cross-border transactions, debt and equity structuring transactions, joint ventures and strategic alliances. She also has formed and structured private equity and hedge funds. Ms. Heide serves as outside counsel for many mid-sized companies on issues of corporate governance, securities law compliance, general commercial transactions and disclosure issues. Her clients span a wide variety of industries, from consumer products to cannabis, medical and personal wellness devices, communications, media and Internet-based businesses.Close
Q. Scott Kaye
Miller Canfield Paddock and Stone
Mr. Kaye has extensive experience advising companies, lenders, sponsors, and private equity funds and their portfolio... | Read More
Mr. Kaye has extensive experience advising companies, lenders, sponsors, and private equity funds and their portfolio companies on finance matters, M&A, restructuring and other corporate matters. Having advised clients on more than $65 billion in financing and debt restructuring in hundreds of transactions, he represents lenders and borrowers in term, revolving and acquisition financing, asset-based lending, bridge financing, subscription lines, mezzanine and subordinated debt, second lien financing, DIP financing and trustees, debtors, DIP lenders, and creditors in out-of-court workouts and formal bankruptcy proceedings.Close