Business & Finance

Financing Business Mergers & Acquisitions

Generational Equity headed by John Binkley is a reputed and trusted name when it comes to middle-market mergers and acquisitions in North America. The Company is reputed for its seminars and workshops where it spreads awareness on how to seal effective merger and acquisition deals at the optimal time. It is also known for guiding and counseling companies when it comes to the procedure. The professionals here state that no two mergers or acquisitions are the same however there are some common components that you should take note of. 

The John Binkley Generational Equity team state that the financing of the acquisition is very important. It is one of the most important components of the merger and the acquisition process that you have to be aware of as a business owner. John Binkley says that every transaction is different and unique in its structure. It will vary when it comes to the choice of options that are available for financing the deal right from the stage of equity finance to a transaction that has a number of layers of equity and debt. One of the prime factors that affect the structure of the merger or the acquisition is its complexity and size. There are other additional factors that you need to take into consideration and they cover the cash position of the buyer, the market conditions and the terms of the sales price.

Financing Business Mergers & Acquisitions

For the bigger deals, you will find that the public markets are available. Business owners should check the public markets and see if it is offering public stocks or whether finance is obtained by going to the public debt market. John Binkley says that the present times is a positive one as corporate balance sheets are quite strong and are getting stronger day by day. There are much better over the balance sheets that existed in the years before. There are several companies that have adequate cash reserves. However, the challenge in the market comes with smaller deals and transactions. He says that if you are a small business owner and looking for small business transactions, you will find that acquiring bank finance is very hard for you to secure.

He further adds that there are some original and creative finance structures that are available and this can bridge the gap that small companies face above. There are finance options in the form of seller notes and debt obligations where the seller is paid by the buyer at a future point of time. There is also a private placement offer that is made to a small group of investors for the objective of business acquisition financing.

In order to raise awareness and spread appropriate information about business mergers and acquisitions, the John Binkley Generational Equity team also conducts seminars and workshops on a regular basis. Here, the salient components of acquisitions are discussed and business owners are given valuable tips and counsel on mergers and acquisitions. They address queries of business owners and also give them counsel and valuable tips on how to conduct mergers and acquisitions without hassles.