There are many ways to grow a business. Commonly, businesses get larger by increasing sales, enlarging their market share, or occupying new market niches. Another way for businesses to grow is by the acquisition of another existing business.

Business Acquisition 101

A business acquisition is a transaction that occurs when one company purchases and gains control over another business entity. If shares have been issued by the company being acquired, then the acquiring company will become the owner of a sufficient amount of them to assume control over business operations and direction. Usually, these types of deals require quite a bit of capital, making business acquisition financing an important area to look into.

How To Finance a Business Acquisition

Just like there are many ways to get into business, there are a number of ways to obtain business acquisition financing. Here are a few to consider:

  • Self Funding. 
  • Funding from a Traditional Bank. 
  • Seller Financing. 
  • Asset-Based Financing. 
  • Mezzanine Financing.  

The last two options are examples of alternative business acquisition financing. There are even more alternative lending options to consider. These options are often offered through a business development company or a financing agent such as My Commercial Capital.

Alternative sources are often utilized in business acquisition financing because not every company can self-finance an acquisition, the seller is not able to offer to finance, or the bank may deny funding. As part of your overall preparation, make sure that you have a detailed plan written up to share with a potential lender to help you get the best financing deal possible.

My Commercial Capital Can Help

My Commercial Capital offers a variety of solutions for businesses looking to make a commercial acquisition. They are very happy to help you find a solution that is perfect for your particular business situation. Consider calling them soon.