Nead & Co. Expands Services to Provide Consulting for Mezzanine Finance

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Middle-market consulting group expands services into alternative mezzanine lending.

Nead & Co., a middle-market consulting firm with clients across the United States, announces an expansion of the company’s consulting services to include consulting for mezzanine financing for mid-market companies. The firm has expanded its existing network of capital providers in order to connect new and existing clients to the right source for non-dilutive growth capital using mezzanine capital facilities.

As a subordinated debt solution, mezzanine capital can provide an alternative lending facility for businesses experiencing large internal growth that needs to be quickly fueled by including additional corporate debt on the balance sheet. In most cases, mezzanine can serve as a bridge between senior secured lending facilities and other more subordinated loans. Because mezzanine capital is often doled-out to smaller companies without as much long-standing history, it is often considered a riskier credit facility. As a result, there is typically a higher cost of capital for mezzanine loans. In most cases, this includes rates from 12% to as high as 30%. However, there are many different types and providers of mezzanine loans.

“Part of the service we are now extending to our clients includes access to our proprietary list of mezzanine players looking for small companies where they can place capital,” says Ryan Nead, Principal of Nead, LLC. “We expect to be able to greatly assist companies of all sizes as they seek alternative non-bank lending options across the middle market.”

One of the big benefits of mezzanine debt is the ability for business owners to use this type of debt without any equity dilution. This is particularly helpful for fast-growing companies that are looking for a way to fuel their growth as their internal rate of return can often be much greater than the cost of the mezzanine financing. Oftentimes such high growth companies use the mezzanine loans to finance acquisitions. Such loans can provide a means for obtaining financing outside traditional means, including traditional banks.

“We are excited to be able to assist our clients as they navigate the waters of non-bank debt financing. We expect to be able to provide value-adding assistance to this market,” says Nead.

About Nead & Co.

As finance consultants for middle-market companies, Nead & Co. includes finance, marketing and operations specialists, helping companies in rapidly-growing markets. The company does not typically work with true startups, unless such startups have existing revenues above $5M per year. The firm is based in Seattle, Washington.

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Ryan Nead
Nead, LLC
+1 (425) 405-0744 Ext: 101
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