YOUR COMPANY IS LOOKING FOR M&A ( Merger & Acquisitions ) FINANCE SOLUTIONS!
BUYING A BUSINESS IN CANADA - SMALL BUSINESS LENDING SOLUTIONS FOR ACQUISITION FINANCING
You've arrived at the right address! Welcome to 7 Park Avenue Financial
Financing & Cash flow are the biggest issues facing business today
ARE YOU UNAWARE OR DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?
CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs
EMAIL - sprokop@7parkavenuefinancial.com
7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Mergers and Acquisitions financing in Canada is somewhat of a ' connect the dots ' challenge for many entrepreneurs, business owners and financial managers looking to complete SME Commercial Finance transactions in Canada.
OVERCOMING THE OBSTACLES IN PURCHASING A BUSINESS IN CANADA
Whether you're a buyer or a seller in m&a financing it's all about knowing alternatives and recognizing how obstacles can be overcome... bottom line... ‘Talking serious ' about buying a business and business financial acquisition! Let's dig in.
CAPITALIZING ON THE OPPORTUNITY TO ACQUIRE A BUSINESS VIA BUSINESS ACQUISITION LOANS
Quite often, a calculated merger makes sense for many companies - other times, opportunities arise (sometimes at the misfortune of others) that cannot be ignored but should be exploited positively.
Raising capital in either a sale, merger, or acquisition creates wealth when executed properly. Business acquisition also requires a reasonable equity investment unless the transaction is highly leveraged on assets.
In many cases, it's simply a sale and purchase of assets and other interests a business might have, up to and including business ' relationships '.
ASSET SALE VERUS SHARE SALE ISSUES
One of the immediate complexities of any sale or purchase of a business is the issue of ' asset' versus ' share' transactions. Here's where talking to your lawyer and accountant can help avoid major pitfalls. Issues to consider are asset values, taxes, and potential liabilities.
Existing financing must also be addressed, including secured creditors, leases, premises, etc.
VALUATION
A formal ' opinion' or ' valuation' of certain or all assets or total business value might be required in many cases. Often, a lender will specify a certain appraiser or valuator as a condition of their financing, which is a case of a trusted relationship between the lender and the appraiser.
Highly recommended in any case of purchase, sale, or merger is a proper business plan reflecting value and challenge areas - most importantly, cash flows. 7 Park Avenue Financial business plans meet and exceed banks and other traditional or alternative lenders' requirements.
THE IMPORTANT OF VALUATION AND DUE DILIGENCE
Valuation plays a large part in the successful financing of any transaction. Capital raised depends on actual asset values ( accounts receivable, inventory, equipment ) and the ability to generate cash flows to pay down acquisition financing and daily operational financing.
Many less experienced business people are often confused or unaware of the different valuation methods - ' Comparables ' ' Times Earnings/ Times Sales ' ' Discounted Cash Flow ' ' Cash Flow Analysis ' etc.
The valuation's type and cost will ultimately depend on the transaction size, complexity, and risk profile.
BUSINESS FINANCE SOLUTIONS FOR MERGER AND ACQUISITIONS FINANCING IN CANADA
At 7 Park Avenue Financial, we identify several methods to achieve merger and acquisition financing to purchase a business in the SME/SMB Commercial arena?
They include;
Govt Small Business Loans
Bank term loans / operating facilities
Asset-based lending
SaleLeasebacks / Bridge Loans
They might be separately considered, or in some cases, cobbled together to complete a transaction. Don’t forget that ' Seller Financing’ in a business acquisition can often be the last piece of the puzzle.
CONCLUSION
In Canada, private equity and venture capital type solutions don't typically apply to small and medium-sized acquisition finance opportunities.
Need some help in business acquisition? If you're looking to ' talk serious ' when it comes to merger and acquisition or selling a business, seek out and speak to a reliable third party advisor such as 7 Park Avenue Financial, a trusted, credible and experienced Canadian business financing advisor who can assist you in your needs for financing an acquisition.
Click here for the business finance track record of 7 Park Avenue Financial
Stan Prokop 7 Park Avenue Financial/Copyright/2021
