Mezzanine Finance

CIBC Mezzanine Finance invests in established mid-market businesses with attractive fundamentals. Designed for later stage companies with positive cash flow, our placements are most commonly used to finance one-time "event" moments in a company's history - for instance, business successions, acquisitions or high growth expansion - and are generally concluded as one part of a more complete financial solution. An inexpensive alternative to raising additional equity, mezzanine funds are typically more patient than traditional bank debt and can greatly increase a company's financial flexibility.

CIBC Mezzanine Finance could be right for your company if:

• your company is a mid-market business with a proven track record and attractive fundamentals like:
  • a sustainable competitive advantage within your industry;
  • strong cash flow with good visibility to future revenues;
  • strong management and committed stakeholders;
  • sales in excess of $10 million; and
  • pro-forma debt is within a reasonable multiple of projected cash flow.
• your company is considering purchasing an external business or group of assets, or a leveraged buy-out.
• your company is experiencing increased capital needs for internal growth such as building or adding capacity, capital improvements to the existing infrastructure, or funding for new business opportunities.

Key benefits

• an alternative to traditional bank financing that bridges the gap between senior secured loans and equity financing
• expansion capital where traditional debt has been maximized
• flexible terms and structures tailored to cash flow and future events of liquidity
• improved ROE