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Mergers & Acquisitions For Dummies, 2nd Edition
book

Mergers & Acquisitions For Dummies, 2nd Edition

by Bill Snow
May 2023
Beginner
368 pages
10h 23m
English
For Dummies
Content preview from Mergers & Acquisitions For Dummies, 2nd Edition

Chapter 12

Financing the Transaction

IN THIS CHAPTER

Bullet Examining various ways to finance and structure deals

Bullet Sorting out types of investors

Bullet Comparing majority and minority transactions

Bullet Recognizing the cost of capital

Before discussions between a buyer and seller heat up — and possibly burn out due to lack of planning — buyers need to line up their financing for acquisitions, and sellers should ascertain buyers’ ability to come up with the dough.

In this chapter, I explore the various methods that help buyers finance the acquisition of companies, including where buyers secure the necessary capital, what exactly they’re buying, and what those transactions look like.

Exploring Financing Options

To many, buying a company means an exchange of cash: The seller gets some dough, and the buyer gets the company. This transaction implicitly states that the payment is currency, to be paid now, and the price is fixed. Although that’s one way to finance a deal, it’s not the be-all and end-all of M&A transactions. Timing, currency, and even the amount of payment all affect a deal’s financing. ...

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Mergers & Acquisitions For Dummies

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Publisher Resources

ISBN: 9781394169504Purchase Link