Acquisition Financing

Dictionary Says

Definition of 'Acquisition Financing'

The capital that is obtained for the purpose of buying another business. Acquisition financing allows the user to meet their current acquisition aspirations by providing immediate resources that can be applied toward the transaction.
Investopedia Says

Investopedia explains 'Acquisition Financing'

There are several different choices for a company that is looking for acquisition financing. A line of credit or a traditional loan are the most common choices. Favorable rates for acquisition financing can help smaller companies reach economies of scale and is generally viewed as an effective method for increasing the size of the company's operations.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Acquisition

    A corporate ...
  2. Acquisition Loan

    A loan given to ...
  3. Cost Of Acquisition

    A business sales ...
  4. Acquisition Debt

    A financial ...
  5. Purchase Acquisition

    An accounting ...
  6. Acquirer

    1. The firm ...
  7. Asset Acquisition Strategy

    The purchase of ...
  8. Line Of Credit - LOC

    An arrangement ...
  9. Horizontal Acquisition

    The acquisition ...
  10. Drop Dead Fee

    Fee paid by a ...

Articles Of Interest

  1. Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
  2. The Merger - What To Do When Companies Converge

    Learn how to invest in companies before, during and after they join together.
  3. Analyzing An Acquisition Announcement

    These deals can make or break investors' returns. Find out how to tell the difference.
  4. The Buy-Side Of The M&A Process

    With almost $2 trillion in sales yearly, find out how these mergers and acquisitions take place.
  5. 5 Common Misconceptions About ETFs

    The rise in these funds' popularity has contributed to misinformation about what they are and how they work. Learn more here.
  6. Derivatives 101

    Learn how to use this type of investment as an alternative way to participate in the market.
  7. Introduction To Asset-Backed And Mortgage-Backed Securities

    In this article, we will go through the structure, along with some examples of ABS and valuation.
  8. Profit From Mortgage Debt With MBS

    Mortgage-backed securities can offer monthly income, a fixed interest rate and even government backing.
  9. Cutting Edge Options Trades: The Zero-Premium Hedge

    This options trade is essentially free and can have huge profit potential, but it's not without its risks.
  10. Offset Risk With Options, Futures And Hedge Funds

    Though all portfolios contain some risk, there are ways to lower it. Find out how.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center