For Experienced Sellers: What is Hybrid Capital and Revenue-Based Financing?

Hybrid capital, or revenue-based financing, might be the solution for a middle-market business owner seeking capital to grow while still maintaining control of their company’s strategic direction. Neil Johnson explains how this model of revenue-based financing works. This detailed discussion covers who can benefit from this approach, how the interest rate flows, how lending multiples are calculated, unitranche debt, and the debt-like and private equity-like features built into this hybrid model of financing.

Learn More: 

• Small Business Acquisition Financing
• M&A Seller Financing: A Complete Guide
• Arrange Financing
• M&A Seller Financing: Handling a Buyer Default

Additional Resources:

• Planning to sell your business? Schedule a free consultation today.
• Download a free PDF copy of The Art of The Exit: The Complete Guide to Selling Your Business and Acquired: The Art of Selling a Business With $10 Million to $100 Million in Revenue.
• Purchase your copy now of A Beginner’s Guide to Business Valuation | The Exit Strategy Handbook | Closing the Deal
• Contact Morgan & Westfield to request a free copy of Jacob Orosz's latest book, Food and Beverage M&A: An Insider’s Guide to Selling a Food or Beverage Manufacturing, Distribution, or Grocery Business.
• To suggest guests, topics, or questions for future podcast episodes, contact Morgan & Westfield.

Listen to Other Episodes: 

• Family Offices and Management Buyouts – What You Need to Know
• Financing an Acquisition – What Buyers and Sellers Need To Know
• Expanding Your Business with Growth Equity
• What Does the Future Look Like for Middle Market Valuations?