EBITDA - Earnings before interest, taxes, depreciation and amortization. Investors look at a company's EBITDA as well as a company's gross earnings, net income or net loss. If a company has a net loss it may still be cashflow positive because the depreciation factor can sometimes be a substantial number. Many companies have positive EBITDA even though they don't have a net income, which is why consultants and investment bankers will try and use this number when talking with prospective investors.
A well structured transaction that pays off a company's debt in exchange for equity in the company benefits the investor, the company and its shareholders. It also benefits the lender, especially in a situation where the loan is less secured than it originally was.
Reverse Merger Funding looks for companies with an EBITDA that can benefit from an infusion of capital to pay off the debt in exhange for equity. Private companies looking for growth capital or acquisition funding can also benefit by a reverse merger or direct public offering so that it can enter the public marketplace an receive a better valuation than it is receiving as a private company. If you think your company qualifies
Submit a Request for Funding.