M&A and Capital Raising

Southern Capital Funding Network assists middle-market and emerging growth companies in accessing the dynamic private capital markets for equity and debt financing by partnering with established, reputable, investment bankers, and private equity firms.

We will only be able to assist established companies that meet the below criteria:

  • Company has revenue greater than $5 million and growing.

  • Company has adjusted EBITDA interest coverage greater 1.35X calculated in one of two ways:

  • EBITDA-to-interest coverage = (EBITDA + lease payments) / (loan interest payments + lease payments) 

  • or EBITDA / interest expenses, which is related to the EBIT / interest expense ratio subject to the industry; a lesser coverage may be considered subject to negotiation with the investor.

  • Company is a Technology, Service, Distribution, Healthcare or Manufacturing business (no gun manufacturers). HEMP industry businesses will be considered on a case-by-case basis.

  • Company is not a real estate, financial services, start-up or commodity business.

  • Owners must have real money in the business. Minimum owner contribution through family and friends $500,000.

  • Owner must be willing to consider mezzanine debt or convertible notes. Must also be willing to consider other options like a total sale (if applicable or giving up majority ownership). 

*start-ups and young, non-profitable companies will be considered on a case-by-case basis.

Typically, our investment banking partners will arrange capital through either Private Equity or Venture Capital channels.

Private Equity - Private equity is a source of investment capital that comes from high net worth individuals and firms. These investors buy shares of private companies—or gain control of public companies with the intention of taking them private and ultimately delisting them from public stock exchanges. Large institutional investors dominate the private equity world, including pension funds and large private equity firms funded by a group of accredited investors.

Venture Capital - Venture Capital is financing given to startup companies and small businesses that are seen as having the potential to break out. The funding for this financing usually comes from wealthy investors, investment banks, and any other financial institutions. The investment doesn't have to be just financial, but can also be offered via technical or managerial expertise. Investors providing funds are taking a risk that the newer company delivers, and doesn't deteriorate. However, the tradeoff is potentially above-average returns if the company delivers on its potential. For newer companies or those that have a short operating history—two years or less—venture capital funding is both popular and sometimes necessary for raising capital, particularly if they don't have access to capital markets, bank loans, or other debt instruments.