BUSINESS ACQUISITION FINANCING

The opportunity to complete a strategic acquisition is one of the best ways to enhance the value of a company, since an acquisition may enable you to leap frog competitors, open new markets, develop new product lines, etc. If your company is interested in a leveraged buyout, it may be able to finance all or most of the purchase price with debt. Debt is the cheapest method of financing an acquisition and can take many forms. These include equipment leasing, term loans, accounts receivable factoring and revolving lines. The amount of debt that can finance an acquisition depends on the assets and cash flows of the combined companies (target and the acquirer) available to collateralize the debt. This will depend on the financial health of both the target and the acquirer. Additionally by restructuring your existing debt, you may be able to free up cash to fund the acquisition.

 

  • Leveraged buyouts
  • Management buyouts
  • Corporate acquisitions
  • Mergers