acquisition financing

Acquisition financing is the process of securing funds to purchase another company or assets. It typically involves borrowing money from lenders, such as banks or investors, to cover the cost of the acquisition. This financing can take various forms, including loans, bonds, or equity investments. The goal is to enable the acquiring entity to complete the purchase while managing cash flow and debt levels effectively. Once acquired, the company usually repays the debt over time using its revenue or strategic assets. It’s a common strategy to expand a business or enter new markets efficiently.