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Buying a business, whether it is the first time or a follow-up investment, is always a special journey. Besides the rational aspects such as annual figures, budgets and personnel, emotional aspects also play a role. Good and specialised guidance during an acquisition financing is therefore essential.
The seller wants to sell and the (potential) buyer wants to buy. It seems so simple, but it often isn't. While the seller wants to sell the business and has usually hired a professional advisor to do so, he or she is often not at all emotionally ready.
An acquisition process starts with an intention to buy or sell. The process that follows takes a long time. It is often only after months of talks and negotiations that a (preliminary) purchase agreement is on the table. This agreement is called the Letter of Intent (LOI). This letter of intent states the main points of the purchase and sale of the company. Think of things like:
Usually, the letter of intent also includes a financing clause. This is a resolutive condition for the buyer to obtain the necessary financing. It is essential to know with whom you are entering into negotiations. Really take ample time for this. Customer acceptance (Know Your Customer) takes a long time with many financiers.
Financing an acquisition is completely different from other financing issues. It usually involves large sums of money and involves not only the purchase of assets but also goodwill. Thereby, the existing working capital financing of the company to be acquired also plays a role.
It is important to know the do's and dont's in acquisition financing. We calculate the ideal ratio of equity to loan capital or, when necessary, paying part of the purchase price later. We have a large network of banks, specialised financiers and investors. You can call on us not only to advise and realise the ideal financing structure but also to supervise the acquisition process itself. Where necessary, we use lawyers or civil-law notaries from our network. We make clear agreements with you in advance about the method of remuneration so that there are no surprises.
Xolv BV is part of of the Ecclesia Group
