Businesses are always evolving. Business growth, sought after by the vast majority of business owners and stockholders, comes in a variety of forms. One of the common ways is by forming a business merger with another company or outright acquisition of another business entity.

Business Mergers and Acquisitions in Brief

Also known as M&A, mergers and acquisitions are actually quite separate from one another. Here are a few of the distinctions:

  • Business Mergers. When two or more independent and separately run firms join up to form an alliance where resources can be shared or pooled, it is referred to as a merger 
  • Acquisitions. An acquisition takes place when one company outright purchases another to gain ownership and control. The net result is a single larger firm.  

How To Finance M&A Activity

Both business mergers and outright acquisitions generally require a fair bit of working capital to put into place. Many companies need to look for funding sources to accomplish these activities.

Working capital for M&A can come from a variety of sources. If it is not self-funded, consider the following options:

  • Traditional Banks and Credit Unions. There are often the first possibilities that come into consideration. Funding is often denied. 
  • Asset-Based Lending. In this mechanism, capital is lent using the assets of a company as collateral against the loan. 
  • Mezzanine Lending. This is a type of unsecured business loan based on the appraised value of the company.  

The last two are offered through many financing agencies, such as My Commercial Capital.

Get The Funding You Need

If your business needs funding for M&A activity, call My Commercial Capital. They can provide your business with the financing you need to grow, merge or acquire. Their business solutions are structured to provide numerous benefits to borrowers. Connect with them today.