Acquisition Financing and Corporate Financial Planning
Lantern Capital Advisors is an hourly based acquisition financing advisor and corporate financial consulting firm for growing companies. As corporate financial consultants, we help established, profitable companies develop plans and raise capital in order to finance faster growth, make acquisitions, perform management buyouts or leveraged buyouts, or refinance corporate debt.
Lantern specializes in finding acquisition financing alternatives that allow owners and managers to maintain control of their company and preserve equity.
Beyond raising capital for clients, Lantern also offers corporate financial planning services, serves as a corporate financial advisor, creates professional business plans, and monitors financial performance in order to help our clients use finance to realize their Company’s unique potential.
Acquisition Financing: Creative Ways To Build Shareholder Value
When considering an acquisition (and alternatives for acquisition financing) there are always three key items of consideration. In order of importance they are:
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The continued growth opportunity provided by the acquisition
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The acquisition financing terms
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The purchase price.
Many acquisitions that fail often do so because those priorities are not in line. The most common mistake is rationalizing an acquisition because of an attractive purchase price, rather than its strategic importance to the buyer’s existing business and future growth plans.
Lantern Capital Advisors helps our clients finance acquisitions during the business planning process from issuing letters of intent (LOI) to execution of the acquisition concurrent with raising the growth capital.
Listed below are a few important pointers, for acquiring, financing, and executing acquisitions that can build significant value for the buyer’s shareholders.
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Identify The Continued Growth Opportunities – Acquisitions always provide immediate growth as the two companies are combined. The better question is once combined will they provide continued growth?
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Realize Acquisition Financing Terms Are More Important Than The Purchase Price – Not unlike buying a car, the true cost buying a company is comprised of many components. In financial terms it’s both the cost of the business and the cost of the acquisition financing. Acquisition financing terms can swing substantially from one institution to another. It’s not uncommon for the total cost of acquisition financing to vary by more than 50%. Do acquisition prices swing that much? No. Do acquisition financing terms? Absolutely.
What if We Wanted To Sell Our Company?
