BIRMINGHAM, AL, February 14, 2023 — Porter Capital Corporation, a leading provider of working capital solutions, helps maximize deal value by playing a key role in merger and acquisition (M&A) transactions. Multiple financial firms can be involved in M&A deals including investment bankers, mezzanine providers, and alternative lenders like Porter Capital. Porter can provide financial assistance by leveraging short-term assets such as accounts receivable, inventory, and equipment as a down payment for the acquisition.
Karen Small and Bob Reagan, both Senior Vice Presidents of Business Development at Porter Capital, recently attended the Alliance of Merger & Acquisition Advisors (AM&AA) Winter Conference in St. Petersburg, Florida to network and attend sessions focused on the changing M&A landscape. Karen Small was also part of a panel discussion on creating leverage in the middle market and said: “M&A deals require strategy, negotiation, and problem-solving skills, which can be very exciting and challenging. I especially enjoy assisting entrepreneurs in achieving their end goals and building their legacy.”
Porter Capital encourages buyers to consult with alternative lenders, like us, before issuing a letter of intent. This allows buyers to determine how much of their short-term assets can be utilized as a down payment before the deal is structured and often helps with negotiating the purchase price, seller note, and down payment. Porter Capital offers solutions for situations not addressed by conventional lenders and can play a significant role in financing M&A deals by:
- Improving cash flow. Providing a business with quick access to cash from outstanding invoices can improve a company’s finances. This can be particularly useful for businesses that are acquiring another company and need to have sufficient funds available to pay for the acquisition.
- Supplementing other funding sources. Alternative financing can be used in conjunction with other financing sources, such as bank loans or private equity, to provide a business with the additional funds needed to complete an M&A transaction.
- Reducing debt. Alternative lenders can help reduce debt by providing businesses with a financing source that does not require taking on additional debt. This can help improve the financial health of a business and make it a more attractive target for acquisition.
- Minimizing risk. Providing a working capital line of credit to a business can make its cash flow more predictable. This can help businesses plan for and finance M&A transactions, as well as reduce the risk of having to back out of a deal due to insufficient funding.
- Enhancing bargaining power. Funding from an alternative lender can enhance a business’s bargaining power by providing it with a quick and flexible source of funding. This can be especially valuable for businesses looking to acquire other companies, as it can help them act quickly when an attractive opportunity arises.
Working with an alternative lender can be a valuable tool for businesses looking to finance M&A transactions. By improving cash flow, supplementing other funding sources, reducing debt, minimizing risk, and enhancing bargaining power, Porter Capital can help businesses achieve their M&A goals and grow their business. Porter Capital Corporation offers commercial financial services nationwide, in a variety of industries, and has been in business for over 30 years. During this time, Porter Capital has grown to be one of the largest privately owned financial companies in the Southeast, providing billions of dollars in working capital solutions to businesses across the United States. From startups to multimillion dollar firms, Porter Capital can help companies expand, acquire other companies, or simply manage unexpected cash flow issues.
About Porter Capital Group
Porter Capital Corporation was founded in 1991 by brothers Marc and Donald Porter in Birmingham, AL. Porter offers working- capital solutions to businesses all over the country in a variety of industries. As a direct lender and factoring company, Porter Capital has provided over $8 billion in funding since its inception. Porter Capital offers Invoice Factoring and Asset Based Credit Lines up to $25 million. Since founding the company, Porter Capital has expanded to include a special transportation division known as Porter Freight Funding. The Porter businesses continue to grow by providing working-capital solutions, emphasizing personalized, dedicated customer service without sacrificing speed and efficiency.
To know more about Porter Capital Corporation and how it can be a working capital solution provider for businesses, call 1-888-865-PORT or visit its official website.
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Porter Capital helps small and medium sized businesses in North America by offering working capital solutions, including invoice factoring and accounts receivable financing.
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