The success of a company is determined by innovation, investment and growth. Company funded with mezzanine capital as equity capital substitute invest more and grow faster than comparable companies in sales and profits. Companies have a better rating and therefore a higher overall funding capacity than comparable competitors with mezzanine capital in the average. The possibility of additional bank financing on reasonable terms is significantly improved when using mezzanine capital. Against the background of a leverage investment capital more and more companies opt for an increase of equity by means of a mezzanine financing”; so Dr. Werner. With the inclusion of profit-sharing certificates, silent equity or loan capital (subordinated bearer bonds) are mezzanine financing instruments available, which restrict the entrepreneurs despite the participation to third parties not in its entrepreneurial independence and freedom of action. The reader where can details Mezzanine capital to the Bank independent corporate finance entrepreneurs seminar”obtain (see).
The mezzanine financing instruments offer the best possibility of participation for companies of all sizes (for start up companies). As a mezzanine investors are not only mezzanine funds of banks and other institutional investors to consider, but also private investors. This becomes the initiator of an own offer of participation of medium-sized companies and gives you even the access to the private money market. Basically, companies in any form of equity on their own can go and raise. The capital market is reserved for not only the large and well-known listed companies, but is also the small and medium-sized companies available. The only requirements for the acquisition of mezzanine capital are equity initiative, a clever marketing strategy and a participation expose or a prospectus to inform the investors (see). in this way E.g.
the surface finishing company Impreglon AG from Luneburg and the Emsdettener Haustechnik company TECE GmbH & co. KG have to collect more than 8 million euros in the form of profit participation rights. But for investors, this plant form of mezzanine capital is interesting, because profits of more than 8% are not uncommon. Such a successful project for company and investor is the pleasure licence mission of the closed system equipment manufacturer ECO Schulte GmbH & co. KG from Menden. The medium-sized companies could pay a dividend by an average of 12% on the treat holder in recent years. “True to the Beteiligungs-themed capital against yield” the ECO Schulte profitably used for investment has flowed to capital GmbH & co. KG. As a pleasant side-effect of the improved balance sheet structure led to a positive credit rating. The company is now classified by the rating service AG in the investment grade.