Practical Advice On Deciding Upon Vital Issues In Mezzanine Finance

Most end with balloon payments. Recently, there have been the addition of provisions related to the performance of the business. Some of these provisions include pure debt, notes contingent on performance and even equity participation. Risk structures can also be changed to include earn outs. this is where key players on the sell side are incentivized to stay on after the transition. Pros and Cons Seller is disadvantaged as they cannot exit or receive full settlement after the transition.