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.

Talk to a Specialist

  • 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

sponsor finance lenders shaking hands

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.

 

professional man in glasses using computer

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.

Providing customized lending solutions to companies like yours.

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.

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.

*All loans are subject to credit review and approval.

Still have questions? Read more FAQs