CONTROLLED is a New York-based private equity and debt advisory firm that invests in or advises oil and gas exploration and production, oil services, construction, real estate, media and technology companies.
In the second quarter of 2022, in an unstable global economic and political environment, Josh CohenPresident of Control—expects a substantial uptick in lower middle market activity as many small businesses begin to suffer from the credit crunch that has resulted from the economic drudgery in the United States over the past 2 years.
“We recognize the difficulty of predicting what will happen tomorrow, especially as we emerge from a global pandemic, amid a change of administration within our nation and conflict among world leaders.” , says Cohen. “The unfortunate reality of the SBA bondage programs that took place in 2020 and 2021 is now surfacing, as many companies have supported or grown with the support of the United States government as a source of capital.”
“We are already seeing the early stages of an economic correction unfold. In small businesses and lower middle markets, this means businesses that are overleveraged by daily or weekly MCA (“Merchant Cash Advance”) payments are now seeking alternative capital in the form of selling shares or issuing debt. convertible.
Cohen sees this as a positive and believes that if a business can overcome the hurdle of expensive financing solutions like MCAs, while building a scalable and efficient operating model, the business will ultimately thrive in the long run, especially if it can attract the right investors.
“It’s not so much about staying afloat, as many companies have gotten stronger or grown in the last 24 months. As businesses continue to operate and grow, their access to strategically aligned, longer-term financing partners is distracted by a myriad of extremely expensive and often unavoidable financing solutions. With the right advisor, however, they can break into this market quickly and reach the right debt and equity investors,” says Cohen.
“As one of the leading private equity advisory firms in the market, we pride ourselves on providing our clients with the most extensive networks of institutional and private lenders and investors, providing the most comprehensive capital solutions. fastest and most efficient on the market.” Cohen added, “We’re here to help, and while not every scenario suits us, we’re at least here to point you in the right direction.”
For more information, visit www.controlcap.com. For media inquiries, please contact Public & Investor Relations, Controlled Development Partners: (412) 559-1559 or [email protected]
Control, established in 2017, is a global private equity advisory firm headquartered in New York, NY. To date, Controlled Development Partners has advised over $550.0 million in executed debt and private equity transactions.