Call us: 03330 113622

Blog home
Categories
Popular Posts
Recent Posts
Archive

• 15 Mar

  Raising Takeover Finance To Buy A Company

  

  Takeovers are situations where a business, or some of its assets, are acquired by another entity. The ownership transfers to the purchaser in return for the payment of consideration. This can be in the form of cash, deferred debt or some other value, e.g., shares in another business.

  Raising Capital

  Raising takeover finance to buy a company is something that many business people have to undertake at some point in their careers. Sometimes an acquisitive business will have the capital on hand to fund a company purchase, but more often than not some form of external investment or finance has to be sought.

  Investment Versus Finance

  Investment is capital in return for some ownership (and some control in some situations) in a venture. It may also not require to be paid back or may have a long-term payback structure. Alternatively, finance is capital that does not require the element of ownership. Instead, it is repaid according to a schedule of repayments.

  Therefore, many business owners will prefer to raise finance as they don't want to relinquish any ownership or control of their business holdings. The team at FundInvoice specialise in raising finance through innovative means to support the purchase of businesses or their assets.

  REQUEST A QUOTE

  Raising Takeover Finance To Buy A Company

  If you are seeking financing for a takeover, there are a number of options that you could consider. For some financially strong businesses, a bank or finance house may be able to provide a business loan or other form of short-term lending to enable you to fund the acquisition in full or in part.

  Using Receivables Finance To Fund Acquisitions

  There is another type of takeover finance, receivables finance, that can be structured to leverage the assets of the company that you are acquiring. This can make MBOs, MBIs or takeovers possible for companies that don't have the assets to support other forms of financing. Additional funds can also be released from the receivables of the acquiring business if more cash is required to top up the capital raised.

  We have produced a helpful guidance article about how receivables finance can be used to fund an acquisition.

  Getting Access To Receivables Finance For A Takeover

  If you want to find out if receivables financing could be a way of financing your takeover, we would be happy to discuss your situation in confidence. Please call us on 03330 113622 or use the form on this page to request a quotation for takeover finance.

  By Glenn Blackman