CASE STUDY

Acquisition Financing

Information Technology Company Sources Acquisition

Financing

Compelling Terms Achieved, Including 10% Increase Over Request

Cerebro’s Borrower was a SaaS focused information technology company seeking debt capital to fund the leveraged acquisition of a complimentary business that would strengthen their competitive position in the industry. The challenges with this acquisition included:

The Borrower had less than 60 days to consummate this transaction which required a fast search and closing process
Both the Borrower and Target service the retail and consumer product market which some lenders scrutinize heavily for attrition risk
Heavy reliance on offshore contracted labor required additional supporting documentation and narrative to increase lender’s appetite
The Borrower wanted to reduce its cash equity contribution as much as possible

While the Borrower maintained relationships with a group of commercial bank lenders for their ongoing business activities, those lenders were not able to provide financing for this acquisition due to limited collateral, transaction size, and short closing time frame. The borrower turned to Cerebro’s platform and team to identify non-bank lending institutions who looked at the transaction very differently and could underwrite the transaction based entirely on cash flows without collateral and personal guarantees.

Furthermore, the lenders identified by Cerebro’s algorithm were able to close within the tight timeline set by the seller. The borrower used Cerebro to identify multiple interested lenders and arrived at a solution that exceeded the requested loan amount, reduced the Buyer’s cash equity contribution, and eliminated equity dilution.

Acquisition Financing

Information Technology Company Sources Acquisition

Financing

Compelling Terms Achieved, Including 10% Increase Over Request

Winning Term Sheet

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