M&A deal success – the financing structure should fit the transaction
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It is vital to engineer the appropriate acquisition financing structure to fit the circumstances that each individual transaction will present.
The financing structure must also be flexible enough to adapt to fit different scenarios; the strength of the business’s cash-flow-generating capacity, the strength of its asset base and the proposed cost of capital etc., can dictate what the best funding structure will ultimately look like.
Very true, Luke!
In order for an M&A transaction to ‘pass the smell test’, it needs to make financially-viable sense. So conducting financial due diligence (before closing the deal) is absolutely critical. Thanks for sharing!
True!, the financing structure should be carefully tailored to fit the specific dynamics of the M&A transaction, taking into account factors such as deal size, nature of the transaction, strategic goals, market conditions, regulatory considerations, risk management, and integration planning for M&A deal success.
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