Mergers and Acquisitions Financing

Felix Lessambo ()
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Felix Lessambo: Fordham University

Chapter Chapter 4 in U.S. Mergers and Acquisitions, 2021, pp 39-49 from Springer

Abstract: Abstract M&A financing is the process of raising money to fund mergers and acquisitions. The primary sources of M&A financing are equity financing and debt financing. Other means of financing an M&A include: IPO, bond issuance, loans, mezzanine loan, or quasi-debt. While cash payment is the preferred method, the price of M&A transactions can run into the millions or even billions, and not many companies can access this much cash from their own funds. A key consideration in M&A financing is to ensure the capital provided is sensitive to the company’s operating cash flows.

Keywords: Bond issuance; Loans; Earn-out; Mezzanine; Joint venture (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-85735-6_4

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DOI: 10.1007/978-3-030-85735-6_4

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