Financing M&A

Good candidates

In today’s environment, a company that is looking for financing must present a good case. Hartney says People’s Capital is a cash flow and collateral (value) lender that deals primarily with asset purchases. “When evaluating credit worthiness, we look at a company’s ability to generate cash flow sufficient to pay its existing debts, as well as the new debt being considered. We evaluate how they have paid their debts historically and check bank and trade references. On larger transactions, we might check receivables and payables aging. We also evaluate customer concentrations.”