Case Study

Acquisition Financing

Sponsor secures financing deal to acquire a saas business

Acquisition financing for SaaS company simplified by data driven matching engine

An independent sponsor group had secured an attractive deal to purchase a SaaS software business at a good valuation but faced a challenge to source the right debt capital in time. Not only was it a typical asset light software business, but cash flow negative in the most recent financial period. The initial lenders approached by the sponsor were negative on the deal and the sponsor faced the real prospect of losing the opportunity due to lack of financing. The group turned to Cerebro Capital to tap the 800+ lender network in order to identify the right fit for this challenging credit profile.

Using its proprietary data analytics technology, the Cerebro team rapidly identified a strong group of potential sources and worked with the sponsor to make sure the data room and story were positioned well for the target lending sources. In under 3 weeks, the Cerebro system delivered several viable term sheets with funding proposals sufficient to give the sponsor (and target) comfort that the closing was on time.

Ultimately, the final negotiated deal exceeded the sponsor’s expectations and lessened the amount of equity required to close this attractive buyout.

Winning Term Sheet

How Can Cerebro Help Your Business?

Based on data collected from lenders and closed deals on our platform, Cerebro can provide you with an estimate of available loan options, estimated borrowing capacity and borrower strengths and weaknesses to help you make the best decision for your business. Our complimentary loan assessment takes just 15 minutes to complete.