Morae Global (Morae) is a full service, integrated provider of services for the legal departments and compliance functions of large corporations and major law firms around the world. Morae has experienced rapid growth since its inception in 2015 and has an aggressive plan to further expand through acquisition.
In order to achieve their goals, Morae management knew they needed to find a long-term partner to strengthen their balance sheet position and provide future acquisition financing.
Cascade Partners was brought into the conversation due to our prior relationship with the management team, as we previously were engaged by Morae to refinance its working capital line of credit.
One of the key factors when identifying a potential debt or equity investor is long-term partnership fit. Fully understanding the short- and long-term strategic needs and culture of the company will aid in selecting the best partner with the right combination of industry experience, personality fit, and deal terms.
For this new assignment, Cascade Partners performed extensive research and developed a targeted group of minority investors, majority investors, and debt providers to allow for a variety of options and terms to potentially assist the team at Morae in finding the best strategic fit.
After more comprehensive strategic discussions with Morae, the goals for the capital raise were set; better capitalize the balance sheet, acquire UK-based Phoenix Business Solutions (an industry leader in the document management space that provides synergies with Morae’s other global businesses), and provide financing for potential future strategic acquisitions and organic growth.
The Cascade Partners’ team secured multiple term sheets with various debt and equity structures. These were carefully reviewed with the Morae management team and board to determine the best fit to achieve their goals.
Given the needs of Morae, they decided to accept a minority equity investment and debt facility from Lateral Capital Management, which provided access to up to $30 million in total capital.