Mezzanine Financing

Bespoke financing to suit your capital requirements

With CBG’s Mezzanine Financing, you can put into practice new strategic ideas for your business. Mezzanine is a form of equity financing which does not impact on your shareholder base so you can preserve your independence.

Given its affiliation with Commerzbank’s “Mittelstandsbank”, CBG naturally has a strong connection with SME’s and is not dependent on third-party investors. We endeavour to be a long-term partner designing the financing structure best suited to your needs. In order to fully meet your expectations our team is highly experienced in all forms of financing and can advise you on all aspects of Mezzanine Capital.

What is Mezzanine Financing?

Mezzanine Financing is a generic term for financing that displays equity as well as debt capital characteristics.

Often this is realised in the form of profit participation rights or silent participations. These financing instruments are regularly subordinated to other creditors, thereby strengthening the equity base.´

Why choose Mezzanine Financing?

Mezzanine Finance can be a good solution when options for straightforward bank financing are limited. Strategic challenges such as desired expansion, be it by internal growth or by means of Mergers & Acquisition, may cause a need for additional capital which cannot be provided by bank finance.

In comparison with direct investments Mezzanine Capital offers two major advantages: there is no change in the group of shareholders and capital costs are tax-deductible.

Why choose CBG?

The solutions we offer are as diverse as possible financing scenarios. We will work with you to design a bespoke structure matching your specific situation with the aim of establishing a mutually beneficial long-term relationship.

What are our Expectations?

Much like a shareholder, we expose ourselves to equity risks when we make an investment. Therefore we closely look at the sustainability of the company’s business model as well as its position in the relevant market.

Expert management and a willingness to engage in an open exchange of information are especially important to us. In return, we are available as your sparring partner when it comes to financing issues while appreciating and respecting your freedom in making business decisions.

Implementation

The completion of a Mezzanine Finance transaction, which is subject to following processes, should not take more than three months:

• Understanding the business model/analysing financial information
• Initial discussion / management presentation

• Designing a bespoke financing structure
• Indicative offer (term sheet)
• Agreement / mandate

• External consultants perform a focussed analysis of the company

• First draft of individual financing agreement for discussion purposes
• Negotiations

• Signing of financing agreement
• Fulfilment of Conditions Precedent
• Disbursement of financing amount