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Q&A

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General Questions
 

  • What exactly does SalemBridge Advisors do? We provide financial consulting, financial modeling and financial capital for small and lower middle market companies.


 

Financial Capital Services
 

  • Is SalemBridge Advisors a lender? No, we are not a direct lender but rather a clearinghouse for financial transactions with a network of hundreds of lenders and investors consisting of banks, credit unions, hedge funds, family offices, private equity firms, private investors and venture capital companies. SalemBridge does from time-to-time make small equity investments into small-cap companies but we are not a private equity fund.

  • How many points does SalemBridge charge for arranging a financing transaction? We strive to be reasonable with our fees and avoid being greedy. For transactions over $1MM, our fee typically ranges from 0.5% - 1% of the total gross transaction amount. For transactions under $1MM, we typically like to charge only between 2% - 3.5% of the total gross transaction amount. This is very reasonable compared to our competitors as the average fee for under $1MM usually consist of ranges between 4% - 6%, which is very expensive for a borrower.

  • Who is qualified? This is another way we differ from most of our competitors. We do not have specific layers of qualifications for our financial products as each program requires a different set of standards. Instead we work with companies that either have cash-flows or tangible assets to collateralize. See our Our Clients page to see what sectors and industries we cater to.

  • Do you provide equity capital? We work with various private equity groups and family offices. We do not raise equity as a typical investment bank. We rather make introductions to equity capital sources. We also do not provide equity capital for seed-level investments or early-stage venture capital situations. See our Private Equity page.


 

Financial Consulting Services
 

  • How would an ongoing consulting arrangement go? Our consulting services are structured a little different as opposed to our Financial Capital services. Our consulting typically requires a monthly fee and/or equity-based compensation depending on the type of project. Typically, there may or may not be a required upfront fee depending on the circumstance and our monthly fee would be due at the end of the month. Our consulting arrangement could be either be canceled at any time or may require locked-in clause for a specific agreed amount of time depending on the type of consulting work or situation.

  • For an ongoing consulting assignment, what would be the monthly fee? The fee varies but we structure the fee according to your budget. Unlike competitors, our fees are capped at reasonable levels and always comes with quality work as we like to earn our fee.

  • What is the cost of conducting a formal Business Valuation? A standard business valuation, especially for smaller companies with limited complexities, can cost anywhere from $5,000 to $20,000 depending on the business and circumstance(s). More complex situations and companies larger in size can range anywhere from $30,000 to $75,000. Please see our Business Valuations page for additional information on our approach and our typical process regarding business valuations.

 

 

Financial Modeling Services
 

  • For financial modeling services, what are the fees? For our Financial Modeling service, we can either charge hourly or a one-time fee due at the end of the project. We typically like to structure it as a one-time fee instead of “milking the system” like so many of our competitors. Sometimes companies like to take their sweet time when they are being paid hourly. We give the value of our work upfront.

  • Are your financial models custom-made or pre-made templates? Both. Depending on your request, we can provide both custom-made financial models or templates. If you are in a unique sector (such as construction, mining, etc.), it is best to design a custom-made financial model that correlates with your company’s business model.

  • Do you charge for edits? We allow our clients to receive 1 free edit request per model. Any requested edits will be on a case-by-case basis regarding price.

 

 

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