Buyout and Acquisition Finance: Funding Solutions You Need from Accord

Buying a business requires cash for the purchase price and working capital to operate the business. Using our asset-based finance products the liquidity you need to acquire a business is easy to obtain. Accord can provide acquisition finance in a simple and smooth solution to facilitate your plans.

Buyout and acquisition financing to make your growth plans a success.

Let Accord help finance your next acquisition or buyout

The chance to acquire a new business can be a tremendous opportunity to grow, gain new markets or market share. But, buying a company or buying out a partner or your principal can require a substantial amount of cash up front to finance the purchase.  Then you have to support the working capital needs going forward.  Whether you are a large, medium sized or small business, these requirements can strain your financial resources. When you utilize Accord’s buyout and acquisition finance facilities, you get the liquidity you need to make an acquisition and support its growth. We provide asset-based financing, secured by the value of the receivables, inventory and machinery and equipment of the company you are buying to finance its purchase.  Our buyout and acquisition finance facilities are easy to understand and just as easy to obtain.  We base our decisions on the value of the assets and your business acumen, not on a long list of financial covenants that constrain how you operate.

When you are considering an acquisition, a buyout or a merger, turn to an expert to provide the acquisition or buyout finance solution.  Accord has been providing liquidity solutions to businesses since 1978 and knows what it takes to help finance the acquisition or buyout of a business.  Our extensive experience with financial and strategic buyers, makes Accord a trusted partner to help you buy a business.  If this is the first one, or one of many, Accord can help.

With Accord, you have several types of business acquisition finance solutions available to help you buy another business. Each type of financing leverages different assets of the target company and can be used alone or in combination, to provide the acquisition or buyout financing you need;

Accounts Receivable Finance

  • Financing your accounts receivable provides upfront cash to manage your expenses while you wait to collect from your customers. The company has made a sale, don’t wait for the customers to pay before being able to use the cash.

Inventory Finance

  • Revolving inventory loans, based on the value of the inventory, provide the cash to pay your suppliers. It takes time to convert the inventory into sales, use the value of this asset to help speed the process. Available in conjunction with accounts receivable financing or as a standalone retail inventory loan

Equipment Finance

  • Term loans finance the equipment needed to operate your business without tying up your cash. While you use your equipment to produce goods and services, use the value of the equipment to provide liquidity to finance the purchase. 

Buying a business has many challenges

When you buy a business, there are many challenges to be faced, don’t let the financing be one of them.  The acquisition and transition to new ownership can involve many day-to-day details, legal agreements, contracts and leases, dealing the employees, goods or services production, customers, accounting systems, marketing and many others.  Don’t let the acquisition finance be an undue strain.  Accord can provide simple and easy to understand financing based on the assets of the business you are acquiring.  You focus on the opportunities for your business and we will focus on providing you the financing.

Accord’s buyout and acquisition finance facilities are based on the value of the assets; the accounts receivable, inventory and equipment.  We do not rely on financial covenants that may constrain your flexibility in operating the business.  We rely on your expertise and the value of your assets. 

Accord’s nearly 40 years of experience providing buyout and acquisition finance pays off for your business;

Accord has provided buyout and acquisition finance to businesses in a wide variety of sectors including:

Our experienced executives have decades of experience helping businesses make acquisitions and a broad array of services to help, call Accord and let us provide the acquisition finance package help you achieve your goals.

Give us a call and get to work with North America’s premier independent finance company.

BUYOUT & ACQUISITION FINANCING FAQ

LBO FINANCING FAQ

When conducting a leveraged buyout, you are using a significant amount of debt to finance the acquisition of a target business. Typically, using the assets of the company being acquired as collateral for the loans.

Although leveraged buyout structures can vary, they typically use a high debt/equity ratio to leverage your company’s assets.

Leveraged buyout financing is a long-term solution to your acquisition needs. Whereas bridge financing is designed to provide an interim financing option until you can obtain a long-term financing solution.

Leveraged buyout financing is a form of acquisition financing whereby your objective is to use an unusually high degree of leverage to support the transaction. Typically, you use the assets of the company being acquired as collateral for the loans.

A leveraged buyout refers to one specific method for structuring an acquisition, where you use significant amount of debt to finance the transaction. A management buyout, which often employs a leveraged buyout structure, refers to the management of a company pooling resources together to acquire the company they currently manage.

LBO financing rates and fees can vary greatly from one transaction to the next. Typically, leveraged buyout financing rates are based on the level of risk, the type of lender you select, and assets you want to leverage.

Each transaction is different, so it is difficult to predict a specific timeframe for your LBO financing. However, Accord will ensure the process stays on track and progresses in a timely manner—according to your unique needs—by working closely with you and your advisors. In some cases, we have been able to complete LBO financing transactions in less than 4 weeks.

Top LBO lenders have a lot of experience helping companies successfully buyout and acquire new companies. Accord has been providing LBO and other forms of M&A financing for over 40 years and we would be pleased to discuss your needs with you. Call us directly to discover how fast and flexible LBO financing solutions can fuel your business acquisition: +1-844-932-9940 (Canada) / +1-844-725-4225 (US).

MBO FINANCING FAQ

Management buyout financing refers to a company’s management team financing the purchase of the company they are currently managing. Often management will structure these acquisitions as a leveraged buyout or partner with a private equity firm to help finance their management buyout.

An MBO financing loan helps you to acquire the company you are currently managing by providing the funds necessary to purchase the company’s assets and operations. Call us directly for fast and flexible MBO financing solutions to fuel your business acquisition: +1-844-932-9940 (Canada) / +1-844-725-4225 (US).

AQUISITION FINANCING FAQ

Acquisition financing is capital, typically obtained by leveraging your company’s current assets, which you can use to buy another business.

If you are looking to expand through a merger or acquisition, you have a variety of options available in order to finance the M&A transaction. In addition to raising equity to support your acquisition, you can leverage the buyout with debt. Debt facilities can include:

  • standard operating lines of credit (offered by banks)
  • cash flow loans
  • mezzanine or subordinated debt
  • asset-based loans secured by your accounts receivable, inventory, machinery and equipment
You can use these different types of leverage individually or in combination with one another to finance an acquisition.

When acquiring a business, you need to consider the funding required to complete the acquisition, as well as the funding necessary to support the ongoing operations. Acquisition financing will enable you to leverage the assets or cash flow of the target company, so you can finance the acquisition. Acquisition financing is often structured with a mix of debt, equity and even financing from the vendor via a balance of sale or vendor takeback note.

There really isn’t a standard acquisition financing timeline, because each transaction is unique. However, Accord will work closely with you and your advisors to ensure the process stays on track. In certain circumstances, we have been able to close on credit facilities for M&A transactions in under 4 weeks.

Many challenges can arise from acquiring a new business, but acquisition financing helps minimize the financial strain of the transaction. One of the most common challenges is having sufficient equity in order to close. Accord has financed numerous acquisitions for private equity and independent sponsors that did not require them to contribute any equity at closing. To learn how we can do the same for your business acquisition call: +1-844-932-9940 (Canada) / +1-844-725-4225 (US).

A private equity group was seeking the acquisition of a target company. The group had a significant amount of capital for the purchase of the target company, but day-to-day operations, paying employees and producing goods required additional capital beyond the amount they allocated for the acquisition. In order to avoid committing additional capital to the acquisition, they decided to use Accord’s acquisition financing solutions to facilitate their plans. By securing an asset-based lending credit facility, they were able to leverage the acquired company’s receivables and inventory, generating sufficient cashflow to make the acquisition a success.

In an ideal situation, the finance company would operate in both countries. However, this is not always an option, so the best solution is to work with a finance company that you are confident in and can trust. With three offices in each of Canada and the U.S., Accord is well positioned to provide financing for cross-border transactions between the U.S. and Canada.

Yes, with Accord you can get acquisition financing for the vast majority of industries, including: retail, wholesale & distribution, manufacturing and professional services.

Yes, U.S. and Canadian companies like yours can take advantage of a variety of fast and flexible acquisition financing solutions. Call us directly and get financing for your business acquisition: +1-844-932-9940 (Canada) / +1-844-725-4225 (US).

The best acquisition finance lenders have extensive experience facilitating private equity acquisition transactions, and offer solutions that finance acquisition costs, but also include working capital for ongoing operating costs, so as to ensure a smooth transition and sustainable success.

Do you have a question or ready to take the next step?

Client Testimonial

“Accord was very responsive in helping us finance an acquisition last year.  The structure of the transaction was unusual and the characteristics of the collateral were fairly unique, but Accord was very creative in developing a financing structure that worked for the company and Accord. They were excellent to work with through closing and have been very flexible and responsive over the past year.  Our Accord experience has been great – they are a high integrity group who has exceeded expectations.”

Daniel Foreman
Principal
Kinsale Capital Partners, LLC

Chicago, IL
Client Since 2015