Sponsor Finance
Providing cash flow acquisition financing in the lower middle market.
Flexible and Creative Deal Structures
Our Sponsor Finance team has the proven experience and knowledge financing cash flow transactions to help business acquirers secure the capital they need. We work with private equity and independent sponsors throughout North America seeking to acquire lower middle market companies in the US.
- Flexible capital structure (seller notes, earn-outs, owner equity rollover)
- Acquisition term loan based on enterprise value, not assets
- Committed financing for add-on acquisitions
- Ability to refinance seller note and dividend recap based on performance
- Senior debt up to 3x earnings before interest, taxes, depreciation, and amortization (EBITDA)
- Dedicated and experienced underwriters, credit approvers and portfolio managers for a smooth, predicable process
About Our Borrowers
Sponsor Finance borrowers are U.S. based companies, backed by a financial sponsor, that have predictable revenues, sustainable cash flow and demonstrated ability to generate EBITDA between $0.5 million and $5 million.
Dedicated to the Success of Your Business
Our Sponsor Finance team is empowered to make decisions quickly, striving to be the most responsive and communicative senior bank lenders in the market. We’re driven by the unique needs of our clients and specialize in simplifying complex transactions. We’re creative when constructing and managing your lending needs to maximize your ROI in the long term.
With our full suite of services, including asset-based lending, traditional secured loans and specialty market services, we can offer access to working capital to help you maintain your day-to-day operations and provide the funding you need to pursue your future plans.
West Coast Specialty Machine Shop
Refinance of local bank lender
Northeast Business Services
Acquisition Financing
Northeast Sports Equipment Retail
Acquisition Financing
Digital Marketing Services Company
Acquisition Financing
Digital Marketing Services Company
Debt Refinance and Dividend
Real Estate Franchise
Acquisition Financing
Funeral Home Services
Acquisition Financing
Commercial Property Protection
Acquisition Financing
Welding & Fabrication
Acquisition Financing
Contact Our Sponsor Finance Team
Contact us and learn how we’re committed to helping businesses acquire small to medium enterprises and support their growth.
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Sponsor Finance FAQs
Our Sponsor Finance team is committed to financing buyers of lower middle market businesses, providing cash flow acquisition term loans of $500,000 - $40,000,000.
EBITDA between $500,000 - $5,000,000. (EBITDA is earnings before interest, taxes, depreciation, and amortization). BankProv’s Sponsor Finance is focused on high quality cash flow – highly recurring / re-occurring customers, etc.
BankProv allows up to 3x senior debt and up to 5x total debt.
BankProv senior debt is 50% or less of the total enterprise value and needs to demonstrate historical debt service coverage on a proforma basis.
Our acquisition term loans are based on enterprise value, not assets.
From the signing of term sheets, transactions typically close within six to eight weeks. However, the amount of time required is highly dependent on due diligence requirements (if applicable mix of field exams, business valuations, etc.), flow of information, and negotiations of loan documents. We provide quick initial indications of interest after receiving financial information and can provide credit-vetted term sheets within one week of receiving required financial information.