OUR APPROACH
The right capital begins with the right questions.
We begin with the economics of the business and the objectives of the transaction. From there, we evaluate financing capacity, structure alternatives, engage appropriate capital sources, and guide execution with discipline.
OUR STARTING POINT
Understand the business before structuring the financing.
Every transaction has a story, but financing must ultimately be supported by economic reality. We examine the quality and durability of cash flow, the assets supporting the business, working capital requirements, and the obligations that capital will create.
We then connect that analysis to the client’s objectives: growth, acquisition, liquidity, refinancing, ownership transition, or another consequential decision. Only then do we begin comparing financing alternatives.
01
Sustainable Cash Flow
Understand recurring earnings, cash conversion, debt service capacity, and downside resilience.
02
Collateral & Asset Quality
Assess receivables, inventory, equipment, and other assets that may support financing.
03
Working Capital
Account for liquidity needs, seasonal cycles, and the cash required to operate after closing.
04
Transaction Economics
Evaluate purchase price, sources and uses, existing obligations, seller participation, and structural risk.
CAPITAL STRUCTURE DESIGN
Financing is a structure not a single source.
We consider how different forms of capital interact, what they cost, how they are repaid, and how they affect the enterprise. The objective is a structure the business can reasonably support.
Senior Cash-Flow Debt
Assess term debt capacity against recurring cash flow and appropriate coverage.
Asset-Based Lending
Consider borrowing against eligible receivables, inventory, or other working capital assets.
Equipment Financing
Evaluate asset-backed funding for qualifying machinery, vehicles, or specialized equipment.
Private Credit
Assess nonbank credit alternatives where flexibility or transaction complexity warrants.
Junior & Seller Capital
Consider subordinated debt or seller participation where suitable and commercially feasible.
Equity & Structured Capital
Evaluate ownership dilution, preferred economics, and risk-sharing when debt alone is insufficient.
OUR UNDERWRITING DISCIPLINE
The structure must work after closing.
We stress-test financing alternatives against operating cash needs, debt service, maturity profiles, covenant requirements, and downside scenarios. A capital stack is only attractive if the underlying business can live with it.
Our role is advisory. Aparti Capital does not directly lend through its advisory services, and proposed financing remains subject to the underwriting, terms, and approval of third-party providers.
WHERE WE APPLY THE FRAMEWORK
Different transactions. Consistent discipline.
The facts change from one financing situation to another. Our analytical standards do not.
Business Acquisitions
Assess acquisition economics, collateral, buyer capitalization, and an executable sources-and-uses plan.
Recapitalizations
Evaluate refinancing options, shareholder liquidity, and the consequences of a revised capital structure.
Growth & Expansion
Match funding requirements and repayment obligations to the business’s growth profile.
Ownership Transitions
Consider seller financing, management participation, and continuity of the enterprise.
Complex Financing
Identify viable structures for nonstandard assets, tight timelines, or challenging credit situations.
OUR PROCESS
From first assessment to financing execution.
A disciplined process improves the quality of decisions and gives capital providers a clearer basis for evaluating the opportunity.
01
Assess
Review financials, transaction objectives, key risks, and initial financing feasibility.
02
Structure
Build and compare capital structures, debt capacity, repayment profiles, and sources and uses.
03
Prepare
Develop financing materials and organize information needed for credible lender review.
04
Source & Negotiate
Engage appropriate third-party capital sources, evaluate terms, and negotiate commercial considerations.
05
Execute
Coordinate diligence, documentation, and closing with lenders, counsel, and other transaction advisors.
PERSPECTIVES & INSIGHTS
A deeper understanding of capital.
Our research examines debt capacity, acquisition structures, and financing decisions affecting lower middle market businesses.
CAPITAL STRUCTURES
How Much Debt Can a Business Support?
A framework for evaluating sustainable debt capacity and financing risk.
ACQUISITION FINANCING
How to Finance a Business Acquisition
Understanding the sources of capital and structural trade-offs in acquisition financing.
RECAPITALIZATIONS
When Should a Business Consider Recapitalization?
Questions to evaluate when liquidity, ownership, or financing requirements change.
DISCUSS YOUR TRANSACTION
Start with the business and the decision.
Share the transaction context and financing objectives. We can discuss how a structured advisory process might help.