Mezzanine Capital as an Alternative Source of Financing Enterprises in Poland – Financial Performance Overview
Mezzanine Capital as an Alternative Source of Financing Enterprises in Poland – Financial Performance Overview

Summary/Abstract: The objective of the paper is to highlight the possibility of providing funding for the SME sector by means of mezzanine financing and to evaluate the impact of this type of financing on the financial condition of businesses. 13 entities which applied mezzanine capital to finance their activity were covered by the study. In accordance with the research objective the financial performance indicators were analysed in the year of securing mezzanine financing and in 5 consecutive years of operation of the firms. Additionally, the comparison of the financial results obtained by these entities with the average industry results was prepared. Mezzanine capital seems to be an attractive method of financing businesses in the SME sector, first and foremost, due to its flexible form. The analysis of the dynamics of the indicators of financial evaluation in 5 consecutive years following the period of obtaining the finance may point to an improvement in the profitability of the enterprises, however, the analysis in relation to the average industry indicators shows that the enterprises funded by means of mezzanine capital generally do not achieve profitability or efficiency above the average results for a particular industry.

• Details
• Contents