Financing a new business or company acquisition
Every company acquisition involves finding the right financing structure. At Marktlink, we have been guiding around 100 transactions a year for more than 25 years, so we’ve built up a significant amount of market knowledge and experience and we have access to an extensive network of suitable investors and finance providers.
In the process of finding the right structure, you can rely on our expert advice and guidance to arrive at the most optimal finance options.
The current finance landscape
The finance landscape never stands still. Laws and regulations keep changing, and the risk appetite of banks keeps evolving alongside. Banks remain an important source of finance options, but alternative providers are appearing in the finance landscape in ever greater numbers. Whichever route you choose, preparation is the key a successful application process. We recommend that you start in plenty of time, and we’re happy to assist with our expert advice.
What is your best option for financing a business?
The wide range of options for financing a new business means there are lots of different routes to choose from. An acquisition transaction usually happens via a combination of equity, vendor loans, external subordinated loans, and bank finance. Our Marktlink specialists are well-versed in all of these structures and have access to numerous providers of finance options.
Traditional bank finance is the most common way to find a loan to purchase a business. When financing acquisitions, the big banks generally attach less importance to securities: their main focus is on future cash flows and how these are affected by market expectations and market circumstances. Other factors that play a role include your experience as an entrepreneur, and the size of your own financial contribution or that of the seller. Based on this information, the bank will assess whether and to what extent they are prepared to finance your company acquisition.
If financing a new business is difficult using bank finance, alternative finance options are available. These include subordinated loans, mezzanine loans and informal investors.
Guidance during your finance application
To make sure your acquisition process doesn’t come unstuck due to lack of suitable finance options, we’ll be happy to help you draw up your finance application. After all, this is your main chance to persuade finance providers about your plans and show them you’ve got the right vision. We’ll work with you to explore suitable forms of finance and compile an application that includes:
- information about the company you intend to buy
- information about you and your history as an entrepreneur
- a detailed market analysis
- your vision of the future / a detailed business plan
- deal structure and detailed financing structure
- comprehensive financial forecasts
With your application in hand, we’ll approach banks and/or investment firms within and outside our network. We will then analyse their offers and help you select the most suitable loan to purchase a business. Aside from hard factors like interest rates and repayment schedules, we’ll look at your personal preferences or existing relationship with a particular bank or finance provider, so you can conclude the right deal with complete peace of mind.
Suitable advice and market knowledge
We regularly talk to entrepreneurs who have the ambition to buy a business, but don’t yet possess the right financial resources. In each case, we will do everything we can to produce a finance application that is as strong and complete as possible. You can also expect:
- access to senior debt providers and other top-rate finance providers both domestically and abroad;
- knowledge of various national and international finance providers and their appetite to invest in which sectors;
- competitive offers in no time at all;
- extensive deal history;
- an entrepreneurial approach;
- personal, expert and detailed advice;
