Fuel growth through flexible financing designed to support ownership transitions without disrupting operations or cash flow.
Built for navigating complex transactions and capital constraints, this financing solution provides the funding you need to acquire new businesses—preserving liquidity, accelerating deal timelines, and supporting seamless ownership transitions.
Access the capital needed to acquire a business without draining your cash reserves—so you can focus on integration, operations, and scaling after the transaction.
Move quickly on strategic opportunities with financing structured to match the size, pace, and complexity of your acquisition.
Whether you’re executing a management buyout, partner exit, or portfolio expansion, acquisition financing adapts to your goals—without unnecessary dilution or disruption.
Ideal for companies expanding through M&A or succession, acquisition financing unlocks the capital needed to close deals quickly—while preserving liquidity and minimizing operational disruption.
Access the capital you need while retaining ownership and control of your business.
Use receivables, inventory, or equipment to unlock funding without added financial pressure.
Seamlessly fund partner exits, management buyouts, or generational handovers.
Secure funding in advance to make faster, more competitive offers in the market.
Financing that flexes with your business, so repayment supports—not strains—your operations.
Keep capital available to invest in integration, operations, or future growth after closing.
Acquisition financing is capital provided to help a business purchase another company, division, or set of assets. It can be structured as debt, equity, or a combination of both, and is commonly used in mergers, management buyouts (MBOs), private equity deals, or strategic expansions.
This type of financing allows businesses to complete acquisitions without depleting cash reserves, enabling them to pursue growth opportunities, expand market share, or enhance capabilities.
Have more questions? Our experts are here to make funding simple, clear, and stress-free.
Meet Our Experts
Clients choose eCapital when they need an engaged, solutions-oriented, long-term credit partner with proven capacity, creativity, and continuity. Our expertise is customization—whether on a $5 million or $150 million facility, employing a meticulous, hands-on strategies.
Our tight-knit group of financing experts are agile and client-centric, yet backed by extensive resources with the scale to conquer any challenge. This means we are going to be a better credit partner through every business cycle, bringing capabilities and passion—as patient, flexible problem-solvers—other providers simply do not have. Our track record speaks for itself.
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Acquisition financing refers to the capital a business secures to buy another company. It can come in the form of debt, equity, or a combination of both, enabling the acquiring company to complete the transaction without relying solely on its own cash reserves.
Companies use acquisition financing to pursue growth opportunities, expand market share, or gain strategic capabilities—without tying up internal capital. It helps preserve liquidity and can make acquisitions feasible even for businesses without large cash holdings.
Common structures include senior term loans, asset-based lending, mezzanine debt, seller financing (where the seller helps finance the purchase), and private equity investments. Each comes with its own risk profile, cost of capital, and control considerations.
In asset-based acquisition financing, the buyer secures funding by using the assets of the business being acquired—such as accounts receivable, inventory, or equipment—as collateral. This approach can unlock capital even when the buyer’s credit profile is limited.
eCapital provides tailored acquisition financing solutions with faster approval times, flexible structures, and less rigid underwriting compared to traditional banks. Our deep deal expertise and ability to fund complex transactions make them valuable partners, especially in mid-market deals.
Absolutely. Many small and mid-sized businesses turn to acquisition financing to support succession planning, consolidate competitors, or enter new markets. Since traditional financing can be hard to obtain, alternative and asset-based solutions are often a more accessible route.
The primary risk is overleveraging—taking on more debt than the business can support. If the post-acquisition cash flow isn’t enough to cover debt obligations, it can lead to financial stress, reduced flexibility, or even default. Proper due diligence and realistic financial modeling are key to mitigating this risk.
