Merger & Acquisition Finance
What is Merger & Acquisition Finance?
Merger and Acquisition Finance is a flexible and varied form of finance designed to cater for the following situations:
- Expansion of existing businesses
- Management buy-outs and buy-ins
- Buy-out of existing shareholders
- Shareholder exits
- Merger & acquisition finance of synergistic businesses
- Capital raisings
- Intergenerational change and estate planning
This type of lending is more suitable for medium to larger type enterprises and the acquisition loans can be in the form of senior debt, mezzanine debt, a form of equity, or a combination of all. In some circumstances merger and acquisition funding can be arranged to be subordinate to existing financial facilities.
When is Merger & Acquisition Finance appropriate?
Merger and Acquisition financing is generally tailored to suit the client's individual circumstances and typically over a three to five year horizon. It entails analysing the acquisition funding requirements and cash flow whilst considering the long term business objectives.
The most significant feature of acquisition finance is the recognition that no two businesses are alike and it is designed to provide finance through change. This change may be as a result of a company's normal business cycle, growth strategies, acquisition opportunities or even downturn and consolidations. As a result, acquisition finance is often innovative and flexible and the acquisition loans can be asset or cash flow based.
At Business Money we work with the lender and the client to ensure the most effective and competitive acquisition financing options are considered, evaluated and implemented to allow businesses to achieve the maximum debt availability and optimum financial solution.