BUSINESS CAPITAL
Financing Your Business Acquisition
Acquiring a business can be a complex undertaking, especially for a smaller firm, and often requires multiple sources of financing. Generally, there are three basic ways, other than cash, to finance your acquisition and grow your business to the next level:
1. Loans against specific business assets
An acquisition often involves the purchase of new business assets, such as buildings or equipment. Since 2006 Oxford Business Capital has been providing asset-backed loans of $500,000 to $100 million to finance acquisitions and other growth initiatives. Assets that qualify for such loans include accounts receivable, inventory, purchase orders, real estate, machinery and equipment, and even intellectual property.
2. Loans against cash-flow and enterprise value
Oxford Business Capital offers growth-capital term loans of up to $100 million. Businesses with a competitive advantage in a fast-growing industry can consider subordinate financing, which may lead to higher loan amounts. Unlike conventional bank loans, this formula allows flexible repayment terms.
3. Equity financing
Oxford Business Capital also participates in and has robust distribution for private placements of equity to meet a variety of growth objectives, including funding add-on acquisitions. In raising private equity capital, Oxford Business Capital always make sure the deal structure is appropriate for a client’s specific needs.