An Orchestral View of Acquisition Financing

Sourcing acquisition financing is a specialized undertaking that involves collaborative processes orchestrated by a transaction expert. Like an orchestral conductor, this expert elevates organizational awareness of the acquisition financing lender’s standards while helping managers articulate the highpoints of the Company’s strengths and strategy. Acquisition financing lenders only lend to companies with ensembles of talented managers.

Regardless of how talented the top person or founder is at the company, unless there is a team of skilled management players, the acquisition financing lender will pass on a soloist-only company. Additionally, acquisition financing lenders are attuned to hearing harmonious pitches that have a central theme or motif that is reinforced throughout their gradual process of understanding the company. Companies have to distill their major theme and be able to describe what they do in light of this. It can be a one-stop shop, a low-cost provider, or an integrated delivery system amongst others.

However, a company that starts its pitch as one type of company cannot suddenly change mid-presentation to a new theme, without sounding a discordant note. Theming consistency is paramount, much like universal motifs are in a classical symphony, in order to maximize impact on the audience. Most companies in search of acquisition financing may have a weak bench on one or more departments that may need some improvement before the lender engagement begins. This is pretty standard and can be gapped with part-time consultants in order to be ready for the acquisition financing performance.

The process of raising acquisition financing is eerily similar to the standard 4-part symphony movement structure. The lending process starts with great enthusiasm and possibility in the first part before acquiring more seriousness and depth in the second. There is inevitably a tumultuous third movement redolent of conflict or uncertainty and the inevitable joyous fourth stage when the lender closes and the Company reaches a state of bliss. The thrill of acquisition financing victory is there for the taking for all companies committed to the discipline of collaborative rigor and performance excellence.