Tag

deal structure

2 insights

A hundred-square waffle showing the total cash a $12 million acquisition consumes in its first six months: 47 squares funded by the acquisition term facility, 44 by buyer equity at close, and 9 by a working capital build that sits outside the deal model.

You Financed the Price. Nobody Financed the Working Capital.

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.
Financing StrategyBorrower Advisory
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Three small stacked columns funding the same $18 million purchase price, showing buyer equity at close of $9 million on an all-cash deal, $5 million when the seller note pays current interest, and $3 million when the seller note sits on full standby.

Same $18M Price. Three Different Equity Requirements.

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.
Financing StrategyBorrower Advisory
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