Whether it’s your first time or a follow-up investment, buying a business is always a challenging process. Besides the rational aspects such as annual figures, budgets, and staff, emotional aspects also play a role. For this reason, solid and specialist guidance on takeover financing is essential.
The seller wants to sell, and the (potential) buyer wants to buy. It seems very simple, but often it is not. The seller wants to sell the company and usually has a professional advisor involved but is often emotionally not ready.
An acquisition process begins with an intention to buy or sell. The process that follows takes quite some time. Often it is only after months of talks and negotiations that a (preliminary) sales agreement is concluded. This agreement is called the Letter of Intent (LOI). This Letter of Intent contains the main points of the sale and purchase of the company. This may include subjects such as:
Usually, the letter of intent also includes a financing clause. This is a resolutive condition for the buyer to obtain the necessary financing. It is essential to know with whom you are entering into negotiations. Take plenty of time for this. Customer acceptance (Know Your Customer) takes a lot of time with many financers.
The financing of an acquisition is totally different from other financing arrangements. Usually, large sums are involved, and it is not only about the purchase of assets but also goodwill that has to be paid. The existing working capital financing of the business to be taken over also plays a part in this.
It is essential to know the do’s and don’ts of acquisition financing. We calculate the ideal ratio between own contribution and loan capital or, if necessary, paying part of the purchase price later. We have an extensive network of banks, specialized financiers, and investors at our disposal. You can rely on us to advise and realize the ideal financing structure and guide the acquisition process. Where necessary, we will use lawyers or notaries from our network. We will make clear arrangements with you beforehand about the method of remuneration so that there will be no surprises.
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