Are you considering a merger or acquisition? A buyout of your partners or investors? Or is the time right to take the reins, and buy the company you currently run? It is possible to transition ownership, even when you lack accessible working capital.
Navigating the complexities of acquiring an existing business can be demanding. You shouldn’t have to worry about financial flexibility or the task of securing funds as well.
The acquisition and transition to new ownership can involve many day-to-day details, legal agreements, contracts, leases, dealing with the employees and customers, goods or services production, and many others.
Our buyout and acquisition finance facilities are based on the value of the assets, the accounts receivable, inventory, machinery, and equipment. We do not rely on financial covenants that may constrain your business’s flexibility. We rely on your expertise and the value of your assets.
Our creative financing solutions allow businesses to leverage existing assets of your business, which provides crucial financial flexibility during demanding transitions Our solutions can also make buyouts, mergers & acquisitions possible that might not have been achievable with traditional financing methods.
Expanding a business requires a careful balance between handling daily operations and making wise investments to secure long-term revenue growth and profitability. Our solutions allow your business to go smoothly through significant transitions while maintaining strong cash flow.
Most importantly, we do not rely on financial covenants that may constrain your business’s flexibility. We rely on your expertise and the value of your assets.
Every organization has resources that can be leveraged to create working capital. Through our growing suite of financial products, we can provide the right solution to meet their capital needs head on.
Get access to revolving funds to support your business goals.
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We work with a wide array of industries. Our clients are all business-to-business entities, meaning they invoice other companies (not consumers) for products and services provided.
eCapital is an award-winning, industry-leader in the alternative financing space. Here are a few reasons why businesses choose eCapital as their alternative financing partner:
Manage your money your way. With eCapital Connect, our proprietary account management software, you are in control of your finances at anytime, day or night.
Our rates are the most competitive in the industry. We know what it takes to maximize your working capital and will customize a solution to meet your needs.
We’re ready and able to provide the funding your business needs now and into the future. As your business grows, so does the invoice financing available to you.
We understand that working capital is critical to your business operations. We’re pros at onboarding new clients and our account management team is here for you every step of the way.
We believe in transparency in all we do. That means no surprises when it comes to our agreements.
Tap into our in-depth industry knowledge to better manage your business. Get smart, actionable advice and useful tips from our finance experts.
For over 25 years eCapital a freight factoring company has helped more than 30,000 businesses grow. We want to do the same for you. Take a look at the latest reviews from our customers on TrustPilot!
Leveraged Buyout Financing (LBO) is a strategy where a company is acquired using a significant amount of borrowed money to meet the cost of acquisition. The assets of the company being acquired are used as collateral for the loans, along with the assets of the acquiring company.
In a typical LBO, the acquiring company (often a private equity firm) uses its own assets as well as the assets of the target company to secure loans. The borrowed money is generally used to pay for a large portion of the purchase price. The acquiring company’s goal is to eventually sell the target company or to take it public in order to repay the loans and earn a return on their initial investment.
A Management Buyout (MBO) is a type of acquisition where the company’s existing management team acquires a large part or all of the company. Financing for an MBO is typically secured by the assets of the company, similar to a Leveraged Buyout (LBO).
In an MBO, the management team pools resources to acquire the business because they believe in its potential and are willing to invest their own money. They might also seek financing from external sources to complete the purchase.
Although leveraged buyout structures can vary, they typically use a high debt/equity ratio to leverage your company’s assets.
A typical Leveraged Buyout (LBO) financing structure is made up of several layers of financing, each representing a different level of risk and return.
When acquiring a business, you need to consider how much money is 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 take back note.
Every acquisition financing process is distinct and doesn’t follow a standard timeline due to the unique nature of each transaction. Nonetheless, eCapital is committed to collaborating with you and your consultants to keep the procedure on course. In certain situations, we’ve managed to finalize credit facilities for mergers and acquisitions in less than a month.
The costs and rates associated with Leveraged Buyout (LBO) financing can differ significantly between transactions. Typically, the rates for LBO financing are determined by the risk level, the choice of lender, and the assets you intend to utilize as collateral.
