Acquisition Financing


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.

BREAKING DOWN '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.

  1. Acquisition

    A corporate action in which a company buys most, if not all, ...
  2. Asset Acquisition Strategy

    The purchase of a company by buying its assets instead of its ...
  3. Drop Dead Fee

    Fee paid by a borrower to a lender when an acquisition deal falls ...
  4. Horizontal Acquisition

    The acquisition of one company by another in the same industry. ...
  5. Acquisition Debt

    A financial obligation incurred through the construction, improvement ...
  6. Line Of Credit - LOC

    An arrangement between a financial institution, usually a bank, ...
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