Merger and business acquisition (M&A) deals occur frequently in the U. S. A business acquisition loan is used to acquire another company or another crucial asset. Often, used by a business that is growing quickly or wants to grow quickly. 

Why Make a Business Acquisition? 

There are many significant reasons to make a business acquisition:

Obtaining economies of scale

Achieving more beneficial diversification

Gaining new technologies

Building stronger market share

Acquiring new synergies or capacities

Reducing costs

Increasing value to shareholders

Why Some Mergers and Business Acquisitions Fail 

The reasons for the failure of a merger or business acquisition include: 

Lacking a good motive for the deal

Choosing the wrong company to target

Overestimating the synergies that are expected to result

Overpaying for the acquisition

Unexpected external problems. Such as economic, technology, or industry shifts

Losing the trust of key stakeholders who aren’t fully on board with an acquisition

Doing inadequate due diligence or making critical errors in the acquisition process

Failing to pull out of a deal when the evidence directs doing so

Failing to make a good integration between parties in the acquisition

How to Finance a Business Acquisition 

A traditional commercial bank loan. Your current bank will likely have a vested interest in continuing your success. 
An SBA loan can cover up to 75 percent of the value of an acquisition that is valued between $150,000 and 5 million.  
An asset-backed loan is a loan based on the forecasted revenue of the firm to be acquired and the value of its assets.  

Third-party financing. 

Revenue-based loans focused on forecasted monthly revenue. 

Seek Expert Financing Assistance 

Contact Quick Capital Funds for expert alternative financing assistance. We offer a range of options to meet your needs and help you reach your goals.