ACQUISITION FINANCE
Acquisition Finance:
The company requires acquisition financing for the acquisition of another company. It will allow the acquirer to meet their aspiration by providing immediate resources that can be applied to the transaction.
Private Equity, Structured loan, i.e. bank loans, line of credit etc., are the main routes used for acquisition financing.
We assist our clients in strategising funding needs, whether for the long term or short term. Further, a time-based funding plan is structured. It can be in the form of equity or debt.
Private Equity:
PRANV advisors have established relationships with PE funds, VC funds, strategic investors and family offices. We can find the right solutions for our clients and investors is having a good understanding of the needs of each of them. Basis the research, we prepare an investment deck and approach potential investors to get the funds in as equity.
Traditional Loans/line of credit:
Based on the requirement, we have a relationship with banks to get funding for the acquired assets, including a line of credit to be made available for running a business. Favourable rates of financing will help the companies to leverage the transactions and grow fast. A bank might be more inclined to give a loan for acuring a company with a steady stream of revenue and stable EBITDA levels. It will help the acquirer to meet debt obligations from the acquired company.
Bridge loans:
Bridge loans are short term finance used for a short period of time to meet immediate cash requirements. It lasts until the company secures structured financing—these types of loans help complete the transaction fast. Bridge loans usually carry a high rate of interest and are backed by collateral.