Acquisition Financing
Access adjacent markets and diversify your customer base
OVERVIEW
Overview
Acquisition Financing
Companies, like yours, typically complete acquisitions with the goal of growing and responding to their customers’ needs more quickly. Through acquisitions, you can also access adjacent markets as well as diversify your customer base.
There are various alternatives for financing an acquisition, depending on the acquiring company’s situation and goals, and the acquisition finance structure can include a mix of funding sources. The most common alternatives for financing an acquisition include swapping stocks, cash, senior debt financing, mezzanine financing, leveraged buyouts, or equity.
We have experience working with companies of all sizes (EBITDA of US$8 million to sky’s-the-limit) from a range of industries to implement a customised acquisition financing solution that meets the objectives of management teams.
Managing Director and Majority Owner, Andrea Chalp, of CARCO, and Marie Fioramonti and Josh Shipley of Prudential discuss financing CARCO’s first cross-border acquisition.
Typical size, structure, uses, and benefits ▼
Typical size
- Senior debt: $10 million - $300+ million
- Subordinated debt: $15 million - $150+ million
- Preferred equity: $10 million - $50+ million
Typical uses
- Acquiring a competitor
- Moving into new geographic markets
- Adjacent capacities / expanding capabilities
Structural characteristics
- Fixed / floating rate
- Unsecured / secured
- Maturities of 3 to 30+ years
- Amortizing or bullet maturities
- Senior debt, alongside subordinated debt / equity (if needed), for a seamless solution with a single, relationship-oriented capital provider
Issuer benefits
- Supportive, patient, relationship-oriented partner
- Deep pockets to provide follow-on capital to fund your future growth
- Understanding the complexities of your particular business
- Capacity to fund across your capital structure with senior debt, subordinated debt, and preferred equity
