Lantern Capital Advisors Typical Client Characteristics:

1. Existing Revenues of $5 - $150 Million (or more).
   

2. EBITDA greater than $1 Million.
   

3. Financing Need From $5 Million to $100 Million (or more). 
   

4. A track record of growth and profitable performance.
   

5. Continued growth (or high growth) potential.
   

6. Desire to obtain acquisition financing, management buyout financing, growth financing, refinance company debt, or replace existing lender.
   

7. Experienced Management Team.
   

Our Engagement Structure

Lantern Capital Advisors has a well defined corporate financial planning process developed specifically for growing companies.  Unique to our process is an initial Financial Strategy Phase where we quickly address our client’s most important initial questions:  Will financial institutions be interested to fund us?  If so, what would be the general financial terms?  By answering those questions early in the engagement process, we are able to consistently meet or exceed expectations, while providing objective advice and valuable services at a fraction of the cost of our competition.

What Makes Lantern Capital Advisors Unique

Lantern Capital Advisors only works under an hourly fee consulting model.  We do not accept brokerage or referral fees and will not perform work on a contingency basis.

Lantern Capital Advisors works on a consulting rather than brokerage or investment banking contingency fee basis so that clients know we have no bias towards the amount or type of financing selected. We deliver substantial value for our clients by assisting them with strategy assessment, business planning, and sourcing capital for growth, acquisitions, buyouts or liquidity. To do this, Lantern accesses a large network of commercial banks, specialty lenders, vendor/lease financiers, private equity and venture capital firms to help our clients identify and select from a variety of sources and types of financing.

Lantern’s ultimate goal is to help clients understand the alternatives and secure the best capital solution for their needs. Typically this means identifying the capital source or structure that offers the lowest‐cost and maximum liquidity while minimizing ownership dilution and personal financial risk.

Download our White Paper As Seen on CFO.com “Investment Banking Fees Examined.”

Raising Capital:  Learn More About

Raising Capital with Lantern Capital Advisors

Lantern Capital Advisors Delivers All Services Using The Consulting Model Formula.

Lantern Capital Advisors works exclusively with growing, profitable businesses that understand the value of working with us, and appreciate our consulting philosophy and consulting fee structure rather than an investment banking fee formula which is sometimes referred to as Lehman or Double Lehman formula.  Lantern Capital Advisors uses a Consulting Model Formula instead of the Lehman Formula or Double Lehman Formula to determine fees for our clients in order to develop the corporate business strategy, corporate finance strategy, or raise capital. 

Lantern Capital Advisors is a corporate finance consulting firm that helps profitable, growing businesses develop and execute corporate finance strategies and business plans, raise capital, or refinance corporate debt.  Lantern Capital Advisors is not an investment bank or broker, and therefore do not charge clients based on the amount of the capital raise, but rather, clients are charged fees based upon the time and experience required of our consulting team in order to achieve the corporate finance and business strategy goal.      Lantern does more than just raise capital, and our clients see us as a trusted advisor that works on their behalf, alongside the entrepreneur and management team in order to raise capital or execute the corporate finance strategy. 

Investment Banking Fees (Lehman Formula and Double Lehman Formula) vs. Lantern Consulting Model Fees

Based on the sample Investment Banking Fees (Lehman Formula, Double Lehman Formula) vs. Consulting Model Capital Raise chart provided here, a typical investment banking capital raise based on the Lehman or Double Lehman formula would cost a company between 1-6% of the total capital raised should they retain and use an investment banker, broker or “finder” for their transaction.  Using this example, a $20 Million dollar capital raise or debt refinancing would cost a company between $300,000 and $600,000 in investment banking fees depending if their broker, investment banker, or “finder” charged them a fee based on the Lehman Formula, or Double Lehman Formula .  Similarly, a $50 Million dollar capital raise or debt refinancing would cost a company between $600,000 and $1,200,000 in investment banking fees, plus “expenses”.

Consulting Model Fee Formula

However, because Lantern Capital Advisors performs all of our work on a consulting model fee basis, our fees are significantly less for the same capital raise, typically averaging under a quarter of a percent of the capital raise, or in these cases $50,000-$125,000 based on the complexity of the capital raise. 

Lantern Capital Advisors doesn’t perform work on a success basis, because our philosophy and methodology ensures that our clients expectations are met throughout the consulting process.  In addition, because our clients are typically well positioned to qualify for financing, they understand that they would qualify for financing from a wide variety of lenders and financing alternatives, and don’t need to pay the high “contingency based” or “broker”, “success”, or “finder” fees that an investment banker would charge.  Lantern’s clients understand that those additional investment banking fees are also typically rolled into the financing costs, and therefore, the overall long-term costs of capital are also more than working with Lantern Capital Advisors as their trusted business advisor. 

In addition, our clients understand the foundation and philosophy of our raising capital service upon which our entire firm is based.  Lantern Capital Advisors does not require exclusivity periods, or break up fees.  Simply put, we represent our clients, and work alongside our client team in order to execute the transaction as if we were part of the management team.  We get paid for our time, our experience, and our value. 

Our Clients know they have options for financing, and trust our corporate financial consulting services team to identify and secure the best financing for their company.