Business mergers and acquisitions are strategic ways to grow or diversify the scope and reach of a company. Whether you decide to merge or make an outright acquisition, there are several hurdles to clear before the deal is done. Chief among those hurdles is finding the money to complete the transaction. Links Financial provides business owners sound advice on merger & acquisition financing based on 35+ years of experience in the industry. Our experience combined with our industry contacts make our acquisition financing model both unique and successful. Contact us today to learn more.
Acquisition Financing Model
When it comes to raising capital for private entities, there are two areas to consider: your structure and your sources. Your industry may enable you to fund working capital with customer deposits if you receive down payments or have a retail component of your business that can act as a cash-n-carry system. This is always the cheapest form of financing.
However, for larger scale transactions, lines of credit or various types of loans are usually needed to raise the capital that the deal requires. When pursuing merger & acquisition financing for private entities, give careful consideration to the following aspects of the deal:
- Loan type
- Personal Guarantees
- Form of capital
What to read next: How to Finance the Purchase of a Business
Keys For Attracting Investment
Whether your source of merger & acquisition financing is from debt or equity, having a solid business plan is key to convincing investors and lenders that your company is worth their time and money. In our 35+ years of experience, we’ve found that the answers to the following five questions can make or break a deal:
- What’s your story? The compelling reason that you started your business in the first place.
- Is your growth plan realistic? If your projections look like a hockey stick, they won’t be believable to investors.
- How do you compete? Define what makes you unique.
- Is it scalable? Show how growth will be sustained and profitable.
- What’s in it for your investors? Tell investors how they get their money back or exit down the road.
Contact Links Financial to learn how to answer these questions wisely and position your request for capital as an attractive opportunity.
What to read next: Links Financial Helps a Tampa Business Owner Achieve the American Dream
Benefits of the Links Financial Acquisition Financing Model
Links Financial leads the way among financial firms in the Tampa area because we have the expertise to help our clients understand and navigate every aspect of the merger and acquisition process. As your advocate, we anticipate potential problems that may disrupt the transaction and provide you with smart options that help you achieve your business goals and ensure a successful outcome. We handle sensitive company information discreetly and confidentially while facilitating the flow of information that all parties need to complete a timely transaction. By working with us, our clients have significantly reduced the time and expense associated with the acquisition process while also getting the most and cheapest form of merger & acquisition financing possible.
Unlike a traditional bank that often works with a limited number of financial lenders, our financial network includes a variety of debt-financing sources. We are well-connected to all of the primary capital providers in the local market and will help our clients negotiate advantageous financing terms. Contact us today about M&A financing.
Read more on this topic: M&A Activity in 2018, What to Expect