Acquisition Funding In A Rough Market

by Crestmark 14. March 2012 05:25

When economic times get tough, it's common to see the market panic. This is a natural response, expected by economists and demonstrated time and again in downturns throughout time. The average person – and in many cases the average business leader – holds tight to funds and hesitates on spending. This was clearly demonstrated in the most recent recession. However, shrewd investors may sometimes spy a worthwhile asset to grab at a steep discount during tough times. But how do you fund that kind of action in a tough market?

Look At Current Funding Options

In many cases, a good first step is to evaluate any lines of credit or other sources of funding that your business already has. In some cases, it may be possible to reorganize your current funds to free up additional capital for an acquisition or merger. In addition, taking a look at your current funds will further reinforce your decision to acquire or not. Businesses should never acquire without a thorough analysis of liquidity, especially in a time of financial difficulty.

Explore Additional Capital Sources

If your intended investment is a sound one and your company has additional resources that can be used to leverage further lines of credit safely, you should continue to search for additional lending options. Depending on your situation, Crestmark may be able to help you. To learn more, contact us and ask about our different acquisition funding options.

Remember, no matter how good you perceive an opportunity to be, ensure that your intended financial institution is reputable before you accept financing from them. Unfortunately, many finance companies failed in the last recession as capital markets became restricted. Don't risk your company simply because you believe that the merger is worth it. Research properly and only take loans from companies that have the proper backing, history, and security. 

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