Happy Thanksgiving! Just like preparing a holiday feast, designing a flexible and well-capitalized balance sheet requires thorough preparation, a dash of Grandma’s wisdom, and the perfect mix of ingredients. This Thanksgiving, consider how various financing side dishes – Delayed Draw Term Loans (“DDTL”), Accordions, and Revolvers (aka, revolving lines of credit) – can fuel a company’s growth plans without leaving it stuffed and lethargic.
- DDTLs are particularly tasty when there’s an acquisition around the corner but you’re not yet ready to close. For a carefully negotiated commitment fee, a company can access the incremental capital when appropriate.
- Accordions, in similar fashion, are best served when a business is growing and will require an increased credit limit in the future – without needing to prepare a whole meal from scratch.
- Revolvers provide much needed flexibility to manage working capital treats that fill up the balance sheet. Properly sizing revolver capacity ensures a company’s credit facility can handle robust growth.
Connect with Our Team
- Jonathan Zucker, Managing Director, Head of Capital Advisory, jzucker@IntrepidIB.com
- Boris Zikratov, Director, Capital Advisory, bzikratov@IntrepidIB.com
- Stephen Senior, Associate, Capital Advisory, ssenior@IntrepidIB.com