Financing Strategy

A buyer models an acquisition as price minus debt equals equity. Then the working capital true-up lands, and the seasonal build after it. The cash required is the same whichever month the deal closes, and the acquisition facility funds none of it.

Two recurring-revenue companies each report $6.0 million of ARR. One is offered a $2.0 million facility and the other $1.0 million. The difference is contract length, and it does not appear in any metric either company reports.

Two buyers agree the same $18 million price for the same business. Depending on how the deferred consideration is structured, the cash the buyer needs at close is $9 million, $5 million, or $3 million. The price never changed.

A distributor doing $40 million in revenue needs $6 million. Read against cash flow it is short. Read against its assets it clears. Read as a blend it borrows $8.2 million. Same company, same week, three answers.

A 2026 Series A takes 18 to 22% of the company at a reset valuation. For a recurring-revenue business that already clears the revenue bar, that dilution is a choice, not a requirement.

Regional lenders posted a sixth straight quarter of margin expansion. Borrower pricing does not move with it. What an untested 25 basis point renewal gap actually costs, and the 120 day sequence that changes it.

Contractor backlog hit a near three-year high while input prices ran 9.6% above a year earlier. Why a full order book is a financing liability before it is an asset, and how to structure against it.

Capex demand is rising into a working capital squeeze. Why paying cash for equipment is the expensive move, and how layering the structure preserves the liquidity growth consumes.