Raise Capital Services: Lantern Capital Advisors
We raise capital. Lantern Capital Advisors is a Corporate Financial Consulting Firm that raises capital for growing companies.
As a corporate financial advisor to growing businesses, Lantern Capital Advisors provides capital raising services for our clients, regardless of whether it is debt or equity. Lantern Capital Advisors performs all work, whether raising capital, advising a company on corporate strategy, or writing a business plan on an hourly consulting model basis, regardless of the value of the capital raise, or the size of the company. Lantern Capital Advisors has been corporate advisors and management consultants to growing companies for over 25 years and have been successfully been raising growth capital for our clients, regardless whether we are refinancing a company debt (taking out a current senior lender), sourcing new company debt for growth capital, or finding equity.
Lantern Capital Advisors helps growing entrepreneurial companies raise capital. Our capital raising services provide clients access to capital using our own unique consulting approach that gets consistent results, offers true objectivity, and is a fraction of the cost of investment banks and brokers that raise capital.
Lantern’s core services include creating comprehensive business plans and securing institutional capital for corporate debt refinancing, acquisition financing, management buyouts, growth and liquidity. Most of Lantern's clients are profitable, established businesses generating in excess of $1 Million per year of operating cash flow (or EBITDA).
How Most Financial Advisors Raise Capital
The typical approach to raise capital by most financial advisors who work with established growing companies is to charge an upfront retainer of $25,000 (or more), and then earn compensation upon funding (called a ‘success fee.’) Success fees can vary significantly but often range between 2% and 10% of the capital raised. While bankers rationalize it is ‘success based’ the process can be very expensive easily costing $500,000 or much more for the company seeking the financing. Even more important, this approach can lead to other drawbacks or conflicts that can work against the best interests of the client.
These conflicts to raise capital can include: fee structures that pay much more for raising equity than debt, receiving equity ownership in a client based on the valuation of the investment, long (typically 2 year) ‘lock up’ or exclusivity periods, and the acceptance of finder’s fees from the funding institutions. (For more information, see our related White Paper: “Investment Banking Fees Examined.”) Taken collectively, these common practices should make clients wonder whether the financing opportunities presented by the success based advisor are really best for the client or the broker.
Lantern Capital Advisors Capital Raising Services: How We Raise Capital
Lantern Capital Advisors succeeds in quickly finding appropriate growth capital financing solutions that limit ownership dilution for our clients. We use a proven methodology in order to raise capital and negotiate financing terms that satisfy both our clients and financial institutions. There is no one out there that does what we do, that is as successful as we are at raising capital, or that can provide capital raising services for less. Over half of Lantern's growth capital raising engagements involve financing amounts over $10 million. We take no equity or warrant positions in our clients.
Lantern Capital Advisors raises both debt and equity on behalf of our clients. Our ultimate objective is to ensure that our clients don’t give up control of their business to outside investors in order to support growth. We help our clients transform their business to high growth enterprises with high multiple valuations. We are repeatedly selected by our clients to work for them again, because they trust that our insight and value for raising capital, and corporate financial consulting differentiate us from our competition.
- Strong Relationships
- Repeat Clients
- Deal Negotiation
- Hourly Based Vs. Broker or Investment Banking Formula for raising capital
Three Phases of Raising Capital For Our Clients
Believing there is a better way and to remain independent, Lantern Capital Advisors raises capital using our own capital raising process that differs significantly from investment bankers and capital brokers in two key ways.
1)We raise capital strictly on an hourly, fee-only basis.
Rather than seeking large success fees to raise capital, and to be fair to our clients of all sizes, we choose to work on a simple, hourly, fee-only basis. This removes any economic incentive to recommend one financing solution or provider over another. We also use reasonable billing rates that are comparable to working with an outsource CFO or middle market CPA or law firm. This simple approach drastically reduces the cost to clients to raise capital, and removes all conflicts of interest or potential for ‘self dealing.’
2)To achieve consistent results, we work in 3 phases in order to raise capital for our clients.