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| Client: |
ComparisonMarket, Inc. |
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| Business: |
ComparisonMarket, Inc. ("CM"), based in Cleveland, Ohio, empowers consumers with instant, accurate comparative auto insurance quotes that they can buy through licensed agents or on-line. The service is private labeled on behalf of leading financial institutions and marketed directly to consumers through insurance.com. |
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| Client Objective: |
The Company engaged BGL to raise private debt and equity capital in order to fund ComparisonMarket’s near-term cash needs and support the future growth of its business model.
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| Results: |
Given the company’s substantial start-up operating cash requirements and absence of a significant asset base, CM did not have the collateral to support a traditional senior bank credit facility. However, the Company does have a revenue model that centers on quantifiable customer renewals, which creates an annuity stream of yearly cash flows. BGL and the Company were able to create a structure that allowed for the securitization of these cash flows into a quantifiable asset. BGL marketed the opportunity to over 50 senior lenders. BGL received term sheets from multiple interested parties. After final due diligence and negotiations, the Company closed on a $20 million senior credit facility provided by Provident Bank.
For the equity raise, BGL approached the traditional venture capital market to fund CM's needs. The opportunity was marketed to over 150 venture capital firms and BGL distributed over 50 offering memoranda. The process yielded term sheets from five interested par |
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