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In acquisitions, deal structure is destiny and yet too many investment bankers underwhelm in structuring between mezzanine debt and minority equity. Investment bankers often overuse equity as their go to capital. In many cases, mezzanine debt can be used in the transaction structure creating huge cost savings for the issuer. Minority equity has its strong points as a patient and durable form of capital, but it is very expensive.

Mezzanine debt is a strong choice for first time buyers due to its balanced and patient approach.
As a hybrid type security, it embeds equity-like creativity into a conventional loan structure, providing more elasticity, customization and timespan.

Most acquirers approach acquisition financing as a binary capital choice between debt and equity. While true, there are subtle structuring options beyond this simple rubric that pay off big for opportunistic buyers.

Acquisition financing is the locomotive of M&A deals – without it, all trains on the M&A track grind to a halt. Most companies have insufficient cash or bank lines to fund a big, strategic acquisition.

Acquisition Financing provided by a cash flow lender fuels M&A activity especially for founder-owned companies. These deals are distinct from private equity-led buyouts where ownership is changing hands. Acquisition financing is widely available for businesses that are growing and taking a major strategic acquisition step.