Acquisition decisions are often driven by the desire to leverage economies of scale, new technologies, or to enter new markets.

When looking to purchase an existing business or buy into one, you will require an innovative, flexible and tailored financing solution - be it an asset or cashflow based loan.

Such a loan requires a customised financial package that provides the capital to grow the combined businesses while cost savings and productivity increases associated with the merger or buy out take hold.

Recognising that no two businesses are alike, often a transaction will require more than a basic bank loan. The process of negotiating business acquisitions finance requires specialist corporate advisory transactions experience and an understanding of commercial business funding options.

Speak to your Accountant for advice or select a specialist independent adviser that has extensive experience in shaping corporate advisory transaction structures which may include various components such as:

• Leveraged Finance
• Deferred Payment Structures
• Cash Flow Finance
• Debtor Finance

Your adviser’s responsibilities will include:

• conducting a professional, pro-active and targeted Business Search and
  company acquisition campaign
• reviewing the businesses you are considering
• providing you with a finance overview detailing the business funding opportunities for the business. This process is vital during the negotiating process
• negotiating the terms of the finance on your behalf
• assisting in the due diligence required.
  

Points of note

• Loans are typically over a three to five year horizon
• The package needs to provide the necessary funds to complete the purchase as well as working capital required for the business.
• Click on the AFS licensee register  to check that your adviser is an authorised ASIC Australian financial services (AFS) representative.

Speak to your legal adviser to understand the risks that accompany financial agreements. Click here.