There are many ways to put the funding together for a MBI, let’s look at the most common sources of finance:
Equity | Management Equity |
Business Angels | |
Venture Capital | |
Mezzanine Finance | |
Debt | Cash Flow Loan |
Crowd Funding | |
Invoice Discounting | |
Asset Finance | |
Commercial Mortgage | |
Vendor Assisted |
Deferred Consideration |
Earn Out |
|
TOTAL CONSIDERATION |
There is no “normal” blend of the above funding sources to comprise a deal, but by and large they will comprise equity, debt and vendor assisted funding in one form or another. The precise quantities of each will be totally dependent upon the unique circumstances attributable to each deal.
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