Introduction
Consumer lifestyle brands are highly attractive to buyers but often undervalued by traditional lenders who don’t understand eCommerce, DTC, or omni-channel distribution. Yaw Capital structured financing for a $22M consumer brand acquisition, ensuring a private equity buyer could close the deal with a flexible mezzanine package.
The Challenge
The target was a fast-growing consumer brand with a mix of retail, Amazon, and DTC sales. Challenges included:
- Heavy reliance on digital sales channels.
- Need for growth capital post-closing.
- Skepticism from banks about digital brand valuations.
Our Solution
Yaw Capital tapped our private credit and mezzanine network. We structured a package that:
- Provided $22M in mezzanine debt to bridge the funding gap.
- Included growth capital reserves for marketing and inventory expansion.
- Protected the buyer’s equity position by avoiding unnecessary dilution.
We positioned the brand’s sales mix, digital reach, and consumer loyalty metrics to highlight its defensibility.
The Outcome
The acquisition closed with a blended debt/equity stack that preserved ownership and funded aggressive growth. Within 12 months, the brand expanded into two new retail partnerships and grew revenue 35%.
Key Takeaways
- Consumer brands need lenders who understand digital sales.
- Mezzanine debt can bridge capital gaps without excessive equity dilution.
- Yaw Capital highlights eCommerce metrics to win lender approvals.
