How to Finance an Acquisition

hosted by: David Mariano, Director and head

of the firm’s Buy-Side advisory practice

How to Finance an Acquisition

Once you’ve decided to expand your business through an acquisition, you’ll need to start making some decisions about how to finance it. With so many options available, where should you start?

On our show this week, Rebecca White is back to help you think through financing and acquisition. She answers your most pressing questions in determining which kind of financing is right for your business.

Key questions in this episode:

* How does the Federal Funds interest rate increase impact the financing of an acquisition?

* How might the interest rate increase impact valuation?

* Where do you start when you decide to make an acquisition?

* What information should you put together before you meet with your bank?

* Is it possible to finance 100% of an acquisition?

* What factors could allow or prohibit a buyer to use mezzanine financing?

* What considerations should a business owner make when determining how much debt to take on?

* What are the positives and negatives of using seller financing?

* When, exactly, do you begin these conversations with your bank?

Key points in this episode:

* How the interest rate increase could impact the cost of your acquisition.

* The first steps toward financing an acquisition (at 03:24).

* Two ways the bank may finance your acquisition.

* Why the power of forward thinking is instrumental when planning an acquisition (at 16:21).

* When seller financing is effective and when it is not.

* How to determine your threshold of debt.

Resources mentioned in this podcast

* Click here for access to training and templates

* What the 2016 Federal Funds Rate Increase Means for Business Owners

* The Three Major Types of Financing

Listen to Fully Invested below: