KEY LESSONS
Our strategic partners have successfully closed numerous non-bankable and bankable debt transactions. These are the key lessons we have learned:
- A well-defined financing strategy must be designed including how to negotiate with the lenders;
- There are multiple lenders who will waste your time reviewing a deal but only a couple who are capable of closing the deal;
- Companies who try to arrange their own financing in a bankable situation or turnaround situation will typically obtain proposals and will often get a deal done; however, the deal will vary widely from the deal our strategic partners would have negotiated, resulting in "overpayment" of fees, expenses and interest by the company;
- Presentation of the requested financing is critical; most companies do not have day to day experience "presenting" themselves to lenders; this is our most valued skill;
- Knowledge of the marketplace of lenders, including knowing the decision makers at each financial institution along with knowing the institution's strengths, weaknesses and credit culture, is critical to completing debt financing transactions; and
- Once a Company has marketed its deal in the marketplace without success, whereby lenders are aware of the nuances and weaknesses of the transaction, it is painfully difficult to close the transaction in the local lending market.