CASE STUDY
SaaS Acquisition Financing
Sponsor Secures Financing Deal to Acquire a SaaS Business
SaaS Acquisition financing simplified by data driven matching engine
- Challenge
An independent sponsor group had secured an attractive deal to purchase a SaaS software business at a good valuation but faced a challenge to source the right debt capital in time. Not only was it a typical asset light software business, but cash flow negative in the most recent financial period. The initial lenders approached by the sponsor were negative on the deal and the sponsor faced the real prospect of losing the opportunity due to lack of financing. The group turned to Cerebro Capital to tap the 2200+ lender network in order to identify the right fit for this challenging SaaS acquisition.
- Cerebro Solution
Using its proprietary data analytics technology, the Cerebro team rapidly identified a strong group of potential sources and worked with the sponsor to make sure the data room and story were positioned well for the target lending sources. In under 3 weeks, the Cerebro system delivered several viable term sheets with funding proposals sufficient to give the sponsor (and target) comfort that the closing was on time.
Ultimately, the final negotiated deal exceeded the sponsor’s expectations and lessened the amount of equity required to close this attractive buyout.
Winning SaaS Acquisition Term Sheet
- Doubled loan size from $5MM to $10MM
- Interest rate reduced by 33%
- Reduced commitment fees by $50K and extended maturity by 8 years
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