Mergers and Acquisitions

Mergers & Acquisitions

Mergers & Acquisitions

M & A Financing

Mergers/Acquisition space for both larger and smaller transactions under $1M that we are funding.

We have a new funding program for smaller acquisitions below 1M that can assist you or your client's in acquiring another business.


Here are some of the basic criterion of the program:

  • 5 years operating history in the space that you are looking to acquire the business
  • 5-7 year terms on the acquisition financing
  • Can be used for partner buyouts, owner buy-ins, stock or asset acquisitions
  • Multiple credit facilities for the same company- ie- buying different locations
  • Business you are acquiring must be doing at least 250k in revenue
  • Minimum Credit Score of 630
  • Program provides 70% of the purchase price with the new owner required to put down a minimum of 20% cash. Seller can carry a note if needed but the 20% cash down payment in non negotiable.

This program is perfect for the following industries:

  • Doctors practices or anything healthcare related
  • Auto Shops
  • Liquor Stores
  • Bars and Restaurants
  • Gas Stations
  • Manufacturing
  • IT Companies
  • Professional Services- such as Lawyer, CPA or Engineering firms
  • Machine Shops
  • Hotel and Motels

If you have interest in buying or merging with another company, and need financing, please complete the form below so that one of our M & A Financing specialists can speak with you further.

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Mezzanine Loans

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Mezzanine financing

 

  • Loan Amount $5,000,000 - $150,000,000
  • Loan Term Generally 3 to 5 years.
  • Amortization Interest only or fixed.
  • Principal paydowns
  • Minimum DSC 1.10
  • Maximum LTC 80- 90%
  • Interest Rate Floating rate over LIBOR index or Fixed. Rates vary based on risk profile, business plan, sponsorship, and other terms.
  • Eligible Property Nationally located apartments, office, retail, hospitality and industrial. No land development or special use projects.
  • Eligible Borrower Single-asset entity
  • Sponsorship Good overall credit with sufficient liquidity and demonstrated experience completing similar transactions.
  • Security Pledge of ownership interests secured by UCC or preferred equity position. Additional credit enhancement (recourse, other collateral, letter of credit or other guarantees) to be determined.
  • Required Reports Appraisal, Property Condition Assessment and Phase I.
  • Prepayment Generally permitted.
  • Uses: Acquisition, bridge, lease-up, repositioning, ground-up development, refinancing, recapitalization, purchase of existing debt.

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Mobile Home Park Loans

Mobile Home Park

Mobile Home Park

Ideal for Smaller Parks

{Note: For larger parks, see CMBS


  • Eligible Properties:
    Minimum of 50 pads or sites
    Minimum of 50% of coaches to be double-wide or better.
    Paved roads and skirted coaches
    No more than 10% Park owned coaches.
  • Term & Amortization: Adjustable, 3, 5, 7, and 10 year hybrid loans amortized for 25/ 30 years.
  • Prepayment Penalty:  Typically step-down prepayment penalties during the fixed rate portion of the loan.
  • Loan to Value Ratio: Maximum LTV 75% on Purchase Transactions, 70% refinance.
  • Debt Coverage Ratio:  Minimum 1.35:1 DCR
  • Credit Score: Min 650
  • Application Fee:  Average of $5,000, which will be applied towards third party costs to include but not limited to Credit Report, Appraisal Report, Property Inspection. Approved Mobile Home Park appraisers only.
  • Title/Escrow:  Preferred carriers offer discounts to our clients.
  • Pricing:  Interest rates quoted daily.
  • Borrower:  Individuals, Trusts, Limit Liability Companies, Limited Partnerships, and Corporations.
  • Territory: Nationwide MSA’s* with minimum population area of 100,000.

Loan Features:

  • Recourse Lender
  • Assumable
  • Layered risk-based pricing to ensure lowest rates
  • Several prepayment options keep you in control

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Preferred Equity Participation

Corporate Meeting

Corporate Meeting

Preferred Equity for requests over $10M

Equity is available to selected opportunities, which the standard provisions are:


  • Investment Size: $10-$50 million.
  • Maturity: 3-5 Years
  • Security: Pledge of Partnership Interest.
  • LTC: Up to 90%
  • Lockout: Minimum of 36 months.
  • Payments: Current and/or accruing.
  • Property Types: All commercial property types.
  • Zoning and Entitlements: In place
  • Geographies: Primary and Secondary markets across the US, with focus on urban locations.
  • Uses: Acquisition, bridge, lease-up, re-positioning, ground-up development, refinancing, recapitalization, purchase of existing debt.

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Recreational Loans

Boat Loans; Marine Loans

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Are you thinking about purchasing or refinancing a boat that is over $25,000? If so, Capital Palm Partners can help you obtain the best rate and term marine loan that you may qualify for. Our process makes things quick and easy because we have teamed up with direct boat loan facilitators that bring a multitude of boat lenders to the front of our finger-tips; thus saving you time, energy and money. Complete the inquire form that is found on this page and begin working on your request immediately.


When submitting a loan application with us, please have the following items:

  1. 2017 and 2018 complete personal tax returns 
  2. If 2018 personal tax returns are not complete, 2017 and 2016 personal returns 
  3. 2018 W2’s and 2018 1040 Extension
  4.  A recent 2018 pay stub showing year-to-date earnings 
  5. Copy of driver’s license
  6. Purchase agreement (if one has been done at this point) 
  7. A brief narrative of prior boat ownership and boating experience 
  8. For loan amounts over $250,000, bank, brokerage, and retirement account statements are required.


If you are a business owner, we will also need the following for all businesses owned: 

  1.  2018 and 2017 complete business tax returns 
  2. If 2018 business returns are not complete: Copy of 2017 and 2016 returns 
  3. 2018 year-end internally prepared P&L (and Balance Sheet if applicable) and 2018 K-1’s. 
  4. Let us know of any monthly payments on your personal credit that are paid by the business

It is important that we compile as much information available at the time of application so that we can present the most accurate picture of the transaction to our lenders. Our process ensures that you will have access to as many options and the best rates possible.

RV Loans, Motor home financing

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 Capital Palm Partners has some of the best financing options available for recreational vehicle owners. Enjoy up to 20 year terms at very competitive interest rates. As your one-stop shop for RV financing, we can process your request for:  

  • Nationwide Loan Services  
  • New or Used RV's  
  • Refinance existing loans  
  • All classes of motor homes
  • Travel trailers, including fifth wheels  
  • Pop-up campers and more.  

​In addition to these forms, we will need the following items:  (1) 2016 and 2017 complete personal tax returns (2) A recent 2018 paystub showing year-to-date earnings (3) Copy of driver’s license(s) (4) Purchase agreement (if one has been done at this point) (5) A brief narrative of prior boat ownership and boating experience  If you are a business owner, we will also need the following for all businesses owned:  (1) 2016 and 2017 complete business tax returns (2) A recent 2018 year-to-date internally prepared P&L (and Balance Sheet if applicable) (3) Let us know of any monthly payments on your personal credit that are paid by the business  It is important that we compile as much information available at the time of application so that we can present the most accurate picture of the transaction to our lenders. Our process ensures that you will have access to as many options and the best rates possible 

Recreational Application

Please submit all documents to corporate@capitalpalm.com 

SBA Loans

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SBA 7(a) Program

 ($350,000 - $4,000,000; Min Credit score: 680)​ 


The SBA 7(a) loan program provides financing to expand, acquire or start a small business and is based on several factors, including the ability to repay, the purpose of the loan proceeds, and the useful life of the assets financed. 


Typical Project Structure:

  • 75% to 90% LTV 1st DOT/Mortgage
  • 10% to 25% Equity Injection

SBA 7(a) Eligible Use of Proceeds:

  • To purchase land or buildings, to cover  construction or expansion.
  • To acquire equipment, machinery, furniture, fixtures, supplies.
  • For long-term working capital. 
  • To refinance existing business indebtedness.  
  • For short-term working capital needs.
  • For financing against existing inventory and receivables.

Eligible Property Types:

  • Office: Professional, Condominium, Medical, Dental and Veterinarian.
  • Industrial: Heavy and Light Manufacturing, Warehouse and R&D Flex.
  • Retail: General.
  • Special Purpose: Assisted Living Facilities / Adult Care, Day Care Facilties, Restaurants, Funeral Homes and Hotels/Motels.

Maximum Loan Amount:  1st DOT/Mortgage – $2,000,000.

Maturity and Amortization:

  • Real estate – Up to 25 Years.
  • Business acquisition – Up to 10 Years.
  • Equipment acquisition – Up to 10 Years.
  • Debt refinancing – 7 to 10 Years.
  • Permanent working capital – Up to 7 Years.

Maximum LTV:

  • Real estate – Up to 90% LTV
  • Business acquisition – Up to 80% LTC
  • Equipment acquisition, Up to 100% LTC fully collateralized.

SBA 504

  ($350,000 - $4,000,000; Min Credit score: 680)​ 


The SBA 504 loan program provides small businesses long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization. 


Typical Project Structure:

  • 50% LTV Conventional 1st 
  • DOT/Mortgage
  • 40% LTV SBA/CDC 2nd DOT/Mortgage
  • 10% Equity Injection

SBA 504 Program Eligibility:


The Small Business Concern must be operated for profit and fall within the size standards set by the SBA (Tangible Net Worth LESS THAN $7.5 million and Average Net Income DOES NOT exceed $2.5 million after taxes for the preceding two years). Loans cannot be made to businesses engaged in speculation or investment in rental real estate.


Use of Proceeds:

  • Purchasing land and improvements, including existing buildings, grading, street improvements, utilities, parking lots and landscaping.
  • Construction of facilities or modernizing, renovation.
  • Purchasing long-term machinery and equipment.

Maximum Debenture:

  • $1,500,000 when meeting the job creation criteria or development goal.
  • $2,000,000 when meeting a public policy goal.
  • $4,000,000 for small manufacturers.

Eligible Property Types:

  • Office: Professional, Condominium, Medical, Dental, Veterinarian.
  • Industrial: Heavy and Light Manufacturing, Warehouse, R&D Flex.
  • Retail: General.
  • Special Purpose: Assisted Living Facilities / Adult Care, Day Care Facilities, Restaurants, Funeral Homes and Hotels/Motels.


Maximum Loan Amount:  1st DOT/Mortgage – $4,000,000

Maximum LTV:  50% LTV - Lower of Cost or Appraised Value.

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Senior Debt

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Senior Debt Financing

 

  • Loan Size: $10-$150 million
  • Maturity: 3-5 years
  • Security: First Mortgage Lien
  • LTC: Up to 75%
  • Lockout: Minimum of 12 months
  • Non-recourse except for standard carve-outs
  • Property Types: All commercial property types
  • Zoning and Entitlements: In place
  • Geographies: Primary and secondary markets across the US, with focus on urban locations.
  • Uses: Acquisition, bridge, lease-up, re-positioning, ground-up development, refinancing, recapitalization, DIP financing, purchase of existing debt

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Small Balance Commercial loans

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Small Balance Commercial Loan

  • Loan Amounts:  $75,000 to $4,000,000
  • Property types:  Multi-Family, Mixed-Use, Retail, Office, Auto Repair, Day Care, Funeral Homes, Beauty Shops, Motels/Hotels, warehouse, Mobile Home Parks, Campgrounds, Churches, Self-Storage, Dry Cleaner (Drop off only), Recreational properties
  • Ineligible Properties:   Raw land, construction, stand-alone churches or gas stations (although we will lend on auto repair/auto body shops)
  • LTV:  Maximum LTV is 70%. 
  • Credit Scores: 650 Minimum FICO Scores.  Any scores below 650 require a reason to request an exception.
  • Closings:   Three to four weeks 
  • Rates: Fixed Rates ranging from 7.5% to 12%.  Interest Only rates start at 12.00% and no prepay.
  • Points:  0 - 3
  • Fees:  Usually No upfront fees
  • Prepay: Declining 5%-4%-3%-2%-1% Prepay Penalty
  • States: Restrictions: Alaska, Alabama, Arizona, California, Hawaii, Michigan, Nevada, North Dakota, Vermont and West Virginia. 

When submitting your application, please send the following information for us to review:

  • Credit Report with scores and trade lines

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Working Capital

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Unsecured Working Capital Loans

Loans begin at $10,000

 No AK, CO, CT, HI, MI, MT, ND, NJ, NV, NY, RI, SD, VT 

 

Higher Quality Credit May Qualify For:

  • Loan Amount: 6% – 8% of Annual Revenues
  • Loan Term: 12 – 24 months

Example Characteristics:

  • FICO: 700 Range
  • Time in Business: 5+ Years
  • Open tax liens: No

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Lower Quality Credits May Qualify For:

  • Loan Amount: 4% – 6% of Annual Revenues
  • Loan Term: 6 – 9 Months​

​​Example Characteristics:

  • FICO: 550 Range
  • Time in Business: 12 – 18 Months 
  • Open tax liens: Yes

Ideal Uses

Medical
1. Slow Pay From Insurance – Bridge Funding
2. Specific Equipment
3. Payroll
4. Expansion/ Remodeling

Fitness
1. Equipment
2. Additional Staff/Trainers
3. Expanding Services: Classes, Additional Members
4. Marketing/Promotion
5. Build Outs and Adding Locations


Manufacturing
1. Inventory/Materials
2. Equipment/Repairs
3. Expansion
4. Accounts Receivable
5. Additional Crew Members
6. New Contracts


Specialty Contractors
1. Materials
2. Payroll
3. Accounts Receivable
4. Additional Crew Members
5. New Equipment

Service Related
1. Inventory
2. Strengthen Cash Flow
3. Expansion/Adding Employees
4. Expanding Services
5. Marketing/Promotion​​

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HVAC & Accessories
1. HVAC, Chillers 
2. Duct Replacement / Add-ons
3. UV - Air Quality Products


 Transportation
1. Repairs
2. Additional Trucks/Trailers
3. Additional Routes
4. Accounts Receivable
5. Taxes/Fuel


​Auto Repair
1. Equipment: New and Repair
2. Inventory
3. Adding Tow Truck
4. Build Outs & Adding Locations
5. Strengthen Cash Flow


Restaurants
1. Upgrades : Furniture, POS System, TVs, Etc.
2. Expansion: Patios, Build Outs, New Locations
3. Marketing/Promotion
4. Inventory​
 

Franchise
1. Franchise Designated Remodel/Upgrade
2. Adding Locations
3. Equipment
4. Strengthen Cash Flow​


Construction
1. Materials
2. Upfront Costs – Bridge Funding
3. Payroll
4. Equipment Rental

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Working Capital Forms

Please submit all documents to corporate@capitalpalm.com