Strategic acquisitions: How external financing can make your growth plans a reality
An effective way for companies to achieve growth is through strategic acquisitions. In this way, companies are able to quickly expand capacity, acquire specific knowledge or gain access to new markets, for example. For many companies this sounds attractive, but a strategic acquisition can also be a very complex process. In this blog, we highlight one of the complex aspects of an acquisition, namely acquisition financing.
The challenge of funding
One of the challenges in strategic acquisitions is obtaining and optimizing the right financing mix. Strategic buyers often do not fully have the own resources to complete a strategic acquisition. In such cases, external financing is required.
External funding as a solution
This is where external financing comes in. By utilizing external sources of financing such as loans from the bank, private equity or mezzanine, companies can obtain the funds needed to complete an acquisition. External financing offers companies the opportunity to raise capital quickly without having to tap extensively into their own liquid assets. To obtain financing, it is important to understand the repayment capacity and/or future return on investment. A financing memorandum is usually prepared for this purpose. Given the complexity involved in setting up the optimal financing structure, it is advisable to engage an advisor who can assist in this process.
The role of Florijnz in strategic acquisitions
Florijnz deals daily with the complexities and challenges associated with strategic acquisitions and the financing they require. With our financial services expertise, Florijnz provides customized advice for companies seeking external financing in the context of acquisitions. Whether raising loans, private equity investors or mezzanine financing, Florijnz is ready to help companies every step of the way.
To learn more about Florijnz's services, check out our services page or contact us directly with no obligation.
