Commercial M & A Solution
Introducing the Hermes Capital “Commercial” M & A Solution
2021 will see the convergence of a number of 2020 narratives:
- Many companies paid down debt in 2020, creating firepower in terms of hard equity on their balance sheets.
- Organic growth will be challenging in 2021 – if economic growth remain stifled.
- Having survived or missed the opportunities to sell in 2020, many business owners will be looking to exit their business, creating buying opportunities for others.
- Banks remain risk averse – especially when it comes to the commercial/sub corporate and “special situations” – including M & A’s.
What is the Hermes Capital M & A Solution?
Hermes offers Asset Based Term Loans that allow companies to use their balance sheets to acquire other companies. Where required, or where credit dictates, adjunct invoice finance can be provided to support on going liquidity as the transaction beds down.
Term Loan Facility repayments are structured to fit the forward cashflows.
The Invoice Finance Facility (where required) is a revolving facility providing regular cashflow against invoices raised.
Corporate finance markets offer “EBITDA multiple” based lending. Typically, these loans are not available to commercial/ sub-corporate enterprises.
Hermes, however, offers Asset Based Lending solutions that can be used for outright purchase, if not as adjuncts to vendor finance should that be available.
Does my client qualify?
The main criteria for Hermes in M & A scenarios include:
- Sufficient assets to support the level of funding required. Eligible assets might include accounts receivable, plant and equipment and property. The assets might reside on the acquirer’s balance sheet and/or the target‘s – subject to the structure of the sale and Section 260A(1) of the Corporations Act pertaining to ‘financial assistance’ adequately addressed.
- Financial information, including forecasts, supports the serviceability of the Hermes facility.
Get your data sheet below - or request a callback from our experience managers today!
Why Hermes?
Hermes has over 10 years’ experience in Asset Based Lending in special situations – including mergers and acquisitions.
Our experience extends across Australia and across all major industries, including mining services, transport, construction and manufacturing.
Hermes is a managed wholesale investment fund. As such, it can make commercial decisions and act with the speed and commerciality that is vital in special situations such as mergers and acquisitions.