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Business Acquisition Financing/Leveraged Buyouts

“It costs less to buy an existing business than to build one from the ground up,” say business experts.

That could be why, despite credit often being elusive and economic uncertainty, there seems to be increasing leveraged buyouts and merger and acquisition activity. Motivating factors include the opportunity to get into emerging markets, new geographic territory, build brands and increase profits more quickly.

Nearly 80% of companies recently surveyed anticipate at least one acquisition in the short term and, conversely, one-third of middle market firms are open to outside investors.

In today’s rigid credit market, securing bank funding can be difficult for companies or transactions that don’t fit into the bankable box.

If the target company does not have a lot of assets, positive cash flow and strong profit margins, traditional bank financing can be tough – if not impossible – to find. Alternative commercial financing options are available.

Key factors to the type and availability of funding is the structure and type of the company that is being acquired and its valuation and growth plan.  Acquisitions often involve different layers of capital which could include debt financing, mezzanine financing and private equity, depending on these factors.

Business Capital specializes in providing “out-of-the-box” capital solutions to fund any situation or acquisition.

If a buyer or seller is not well versed in financing, it is vital to partner with a reputable firm, like Business Capital, that understands the complexities of the situation and all the available options to determine the right source and structure of financing for each specific business opportunity.

Does your business plan include an acquisition in your future?

When considering an acquisition (and alternatives for acquisition financing), key items to deliberate are:

  • The continued growth opportunity provided by the target company
  • The acquisition financing terms
  • The purchase price

Many acquisitions that fail often do so because these factors are not carefully considered. Acquisition Financing is not “one size fits all.” Business Capital is expert in this type of complex transaction and will address each of these factors to structure and package the best solution with financing terms that are highly customized to each client’s needs; and also provide analysis of the purchase price to determine if it can be supported by the cash flow and assets of the acquisition, and falls within industry standards.

Why Business Capital?

Business Capital has been providing debt financing and restructuring services to small and middle market companies for over a decade. With a strong background in leveraged buyouts and acquisition financing, BizCap has a proven track record of successfully structuring and syndicating the optimal loan or loan combinations to quickly execute this type of transaction. We have developed solutions and are accustomed to the complexities in all areas of debt financing; we have the capacity and experience to provide, structure and coordinate event financing in all sizes, types, industries and situations. If necessary, our business debt restructuring practice can also reduce liabilities and debt to pave the way for a successful outcome.

Click on the Links below to see our recent acquisition financing, leveraged buy-out & restructuring for acquisition deals:

$5 Million Acquisition, Leveraged Buy Out Financing for Provider of IT Solutions & Services

$5 Million Acquisition, Revolving Credit, Real Estate & Term Debt Financing for Beer Distributor

$3 Million Acquisition Financing for Electronic Medical Records Software Company

$7 Million Liability Restructuring for Acquisition by Public Media Conglomerate