Acquisition Financing

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.


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