Entries by ClearThink Capital

Raising Capital: Everything You Need to Know

Raising capital is one of the most critical steps for businesses at any stage, whether you’re looking to fund expansion, invest in acquisitions, fuel R&D, or stabilize operations. Access to capital can be the difference between achieving exponential growth and stalling out due to lack of resources. For companies seeking to scale, the ability to […]

How to Use Mezzanine Financing (Sub-Debt) to Avoid Dilution

Raising capital is one of the most critical challenges for growing businesses, but with capital comes the question: How do you raise funds without giving up too much equity? For companies that want to avoid diluting their ownership, mezzanine financing (also known as subordinated debt) offers a flexible and attractive option. Mezzanine financing combines the […]

How to Maximize Your Company’s Valuation Before Raising Capital

Raising capital is a pivotal step for businesses seeking to scale, develop new products, or expand into new markets. However, one of the most critical factors determining the success of your capital raise is your company’s valuation. A higher valuation can not only increase the amount of capital you secure but also make your company […]

Why Companies Are Saying No to Bank Financing

For decades, traditional bank loans were the default option for companies seeking financing to grow, acquire, or stabilize their businesses. However, an increasing number of businesses, particularly in the lower middle market and middle market, are now turning away from banks and exploring alternative financing options. The shift away from traditional bank financing is largely […]

Equipment Financing vs. Equipment Leasing

When it comes to purchasing equipment for your business, you have two main options: equipment financing and equipment leasing. Both of these options allow you to obtain the equipment you need without having to pay for it upfront, but they work in very different ways. So which one is the right fit for your business? […]

The Basics of Purchase Order Finance

Purchase order financing is a specialized form of commercial credit funding that offers a unique solution to cash flow challenges that may arise when fulfilling large customer orders. It provides companies with the necessary funds to pay their suppliers and complete orders without straining their working capital. Purchase order financing is a financial arrangement in […]

Preparing for M&A: Data Rooms

A successful merger or acquisition (M&A) process relies heavily on effective communication and seamless transfer of information between the involved parties. Data rooms are a crucial component of this process, providing a secure, organized, and efficient platform for sharing sensitive data. The Importance of Data Rooms in M&A Transactions Security Data rooms provide a secure […]

5 Common M&A Pitfalls to Avoid

Mergers and acquisitions can be complex and risky endeavors, with a high failure rate. According to Harvard Business Review, between 70% and 90% of M&A transactions fail. To increase the chances of success, it is important to avoid common pitfalls that can derail a deal. Here are five common pitfalls to avoid in M&A deals: […]

The Role of Due Diligence in M&A (Mergers and Acquisitions)

Due diligence is one of the most important steps in the mergers and acquisitions (M&A) process. Due diligence is the investigation and evaluation of a company or asset before a transaction is completed. The goal of due diligence is to identify and remediate any potential risks or issues that may affect the value of the […]

How to Finance a Merger or Acquisition

Mergers and Acquisitions are a way for a company to grow by acquiring other companies. These may be competitors, suppliers, customers, or other. One of the most crucial aspects to a merger or acquisition is determining how to finance the acquisition. Here are a few options to consider: Cash If you have the cash on […]