Business Acquisition Financing
We have the ability to design structures for either a leveraged recapitalization (partial owner cash out) or an outright sale of the business for the owner.
Also known as commercial acquisition financing, this refers to methods used to gather the necessary capital for the purchase of a new or existing business. Mergers and acquisitions are inherently complicated transactions no matter if the target is a small, medium or large enterprise. We can offer you commercial financing solutions with our extensive business acquisition financing experience and expertise, helping make such a transaction a fruitful one for both you and the seller.
Business Acquisition Financing Configurations
The terms can have a broad scope. There are various methods of commercial acquisition financing that can actually be used to generate the funds. Usually there are three layers of capital involved
- Layer 1 - Senior Debt - Low risk, low cost, short term, least flexible.
- Layer 2 - Mezzanine Debt - Moderate risk, moderate cost, long term, flexible.
- Layer 3 - Equity - High risk, high cost, long term, most flexible
How the commercial acquisition financing is structured depends on the nature of the targeted business as well as on credit and asset related factors.
Factors Considered in Business Acquisition Financing
To piece together a clear picture for commercial acquisition financing decisions, we delve and analyze the cash flow history of the target business. The condition and quality of its assets are evaluated as well. This is all part of the business acquisition financing services we provide. With our expertise in leveraging those assets to build the optimum commercial acquisition financing structure, we can help you expedite a successful M&A transaction.
Other business acquisition financing factors taken into account are your credit history, management experience, plans for business growth, and possible market risks. We don’t just provide the monetary component of commercial acquisition financing. We aim to be a partner that will work with you through the entire process.
With practically unlimited private funding in capital for commercial lending, we’re in the right position to meet your commercial acquisition financing needs. Take one step closer to expanding your company’s portfolio through the extensive options that our business acquisition financing can provide.