Notice. This page is informational only. Any engagement remains subject to transaction review, underwriting analysis, KYC, AML and lender approval.
Business Acquisition Financing For US Companies
Many business buyers reach a critical point in a transaction where they have identified a target company but require financing to complete the acquisition. Access to structured acquisition financing can determine whether a transaction closes or fails.
FG Capital Advisors assists buyers by structuring business acquisition financing and introducing transactions to lenders and private credit providers active in acquisition lending.
Request A QuoteLoan To Buy A Business
Buying an existing business often requires external financing. Many acquisitions are funded through a combination of debt and equity, allowing buyers to acquire profitable companies without committing the entire purchase price in cash.
- Senior acquisition loans
- Mezzanine financing
- Seller financing
- Equity contributions from sponsors or investors
The financing structure typically depends on the target company's cash flow, industry profile and overall transaction size.
Typical Acquisition Financing Structure
| Capital Source | Description |
|---|---|
| Senior Debt | Primary acquisition loan provided by banks or private credit lenders. |
| Mezzanine Financing | Subordinated capital used to bridge the gap between senior debt and equity. |
| Seller Financing | The seller carries a portion of the purchase price as a note. |
| Buyer Equity | Capital invested by the acquisition sponsor or investor group. |
When Acquisition Financing Is Used
- Entrepreneurs buying an existing business
- Management buyouts
- Search fund acquisitions
- Independent sponsor transactions
- Industry consolidation and roll-up strategies
What Lenders Evaluate
Lenders financing acquisitions primarily evaluate the financial performance of the target company. Debt repayment is typically supported by the acquired company's cash flow.
- Historical EBITDA
- Debt service coverage ratios
- Industry stability
- Management and buyer experience
- Equity contribution in the transaction
Where FG Capital Advisors Fits
FG Capital Advisors assists buyers by structuring acquisition financing proposals and introducing transactions to lenders capable of supporting business purchase financing.
- Capital structure design
- Financial modeling for acquisition financing
- Lender introductions and outreach
- Transaction coordination during financing negotiations
If you are seeking financing to buy a business and have identified a target company, submit your transaction details for review.
Request A QuoteDisclosure. FG Capital Advisors provides advisory and capital placement services only. Financing is arranged through third-party lenders and financial institutions.
