Acquisition financing is frequently viewed through a transactional lens, without much focus on the attributes of the different type of providers. Often a buyer under focuses on the qualities of the acquisition financing provider, and cares solely whether they can deliver the loan and close.
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.
There is a decidedly pro-business mood in the air with the changing of the administration which bodes well for acquisition financing trends. The decision to engage in middle market acquisition financing is a big one for a business as it involves complexity, change management and resource commitment.
Acquisition Financing need not be daunting for a first-time buyer despite the strange acronyms the financial jargon used by industry participants. Raising acquisition financing is like any large project where expertise, planning and process is critical. Deploying a practical blueprint to raise acquisition financing is a way to make the process more efficient and faster.
Acquisition Financing is a versatile tool for businesses seeking long term growth. It can be used in a principal way or in a secondary way depending upon the growth profile of the company. Often there is great value to the business to have acquisition financing in its back pocket to use opportunistically. Industry conditions often dictate the most sensible way for a business to grow. During nascent stages of growth, there are typically large levels of demand leading to the need for capacity scaling.