Private Equity Financing Process

We assist middle-market and emerging growth companies in accessing the dynamic private capital markets for equity and equity-related financing. Over the years, these markets have grown to encompass thousands of capital providers of varying quality and reputation. Growing middle market companies have numerous options to consider when evaluating how to grow their business. Two of the most important are finding value-added partners to invest in the company at the appropriate valuation.

We represent clients as an agent in raising capital from institutional investors. The types of private equity transactions we look for include venture capital for emerging growth companies, growth capital for more established companies, and leveraged acquisitions and recapitalizations for growth-oriented companies with strong cash flows.

Since 1996, we have focused on raising between $5 million and $50 million per transaction and have raised more than $700 million for our clients. Through this experience, we have formed hundreds of relationships with capital providers across the country who invest across industries and stages of a company’s lifecycle. While every capital raise introduces new relationships, we have built a broad network of contacts with reputable venture capital firms, private equity groups and mezzanine funds, many of whom view Croft & Bender as a proprietary source of deal flow for quality middle-market opportunities in the Southeast.

Since the market requires that a company represent a significant growth opportunity combined with a highly qualified management team, we are highly selective regarding our private equity clients. We typically work with established companies, but we will assist companies at an earlier stage of development that have exceptional growth potential. In arranging a private equity transaction, we assist our clients by:

• Determining the amount and type of capital to be raised
• Establishing an initial valuation range
• Establishing proposed terms of the financing
• Preparing the offering memorandum
• Utilizing our extensive network to contact private capital sources
• Negotiating final terms of the financing

In addition, our private equity fund (C&B Capital, L.P.) is well positioned to participate as a co-investor in selected transactions. By helping companies through the capital raising process, we form relationships that continue as the company grows.

CASE STUDY

Payerpath was in its very early stages of growth, with a finished product, several hundred customers ... [more]