MRR line of credit

 

 

For one software client, the TJ Edwards Group had closed a traditional Venture Bank line of credit which was based on eligible accounts receivables.  While this line was sufficient, we began exploring options for additional growth financing, and deternmined that debt financing was prudent in the circumstances.

 

In consultation with the venture bank, we were able to modify the line of credit by converting it to a "MRR" credit facility (Monthly Recurring Revenue). The MRR type of financing is a relatively new concept designed for SaaS companies.  Banks have changed their approach to SaaS companies, and as a result, such financing can be easier to underwrite assuming the appropriate metrics exist.  This may result in availability to a larger line of credit.

 

In our client's case, we were able to double the existing line, and were able to close quickly.  This facility was closed with Bridge Bank, and represented the fist MRR line of credit they closed in the east.

Sell side M&A transaction

 

 

Our team coordinated the sell-side transaction process for several companies in the prior year, and completed due diligence with 5 potential acquirers. Through these engagements, we also worked with 3 investment bankers.

 

Our services in connection with one such engagement kicked off with assistance in the preparation of forecasts and presentation materials, and followed with multiple presentations to potential acquirers (both east and west coast).

 

The TJ Edwards Group lead the due diligence management which included various phases as prospective buyers went further into the process.  With term sheet in hand, the level of due diligence becomes a substantial undertaking.  We lead the management through the full process including setting up and managing the data room, and users, and managment of over 1,000 files. 

 

Our team assisted in analyzing terms sheets as they were received including the development of "waterfall" model to assess the exit impact to shareholders.

 

With respect to the term sheet, we assist as needed in the negotiation, and in this case, we teamed with an investment banker in finalizing terms with the potential buyer.  We continued to be instrumental during the close, working with the buyer and legal teams.  Our services continued well into the transition to new ownership.