Acquisition financing is funding to acquire or merge with another business. It is the means of providing capital to acquire control of a company by stock purchase, stock exchange, cash, or any combination thereof.
Qualifying and credit related decisions are often based upon such factors as:
- Previous cash flow history of the business
- The credit history and experience of borrower
- The management experience of the purchaser
- The quality and condition of the acquired assets
Typical terms for acquisition financing are:
- 100% Project cost funding and loan amounts exceeding $250,000
- Up to 10 year terms, if the project does not include any real estate
- Up to 25 year terms, if the project does include real estate
Capital for acquisitions is available for a wide range of business sectors and franchises including but not limited to: Retail, wholesale and service related industries; Manufacturing and industrial; Distribution, import and export companies. Some questions to ask when considering Acquisition Financing include: Is there an opportunity to expand by merging or acquiring competitors?
Could you acquire companies with services and products that would balance your portfolio? Would it be beneficial to have a partner to help in the negotiation of strategic acquisitions? If you answer yes to any or all of these questions then it might be a good idea to look towards Acquisition Financing for your funding needs.