Acquisition Financing
Many times, new deals, or our existing clients, are presented with opportunities to acquire existing businesses and we’re asked for help. Our help is two-fold. First, we’ll analyze and provide due diligence on the assets being acquired. (Normally, these are asset purchases, not stock.) We’ll do appraisals on the equipment and advise the acquirer on negotiating a purchase price. Second, we will provide the overall financing.
Banks often approach acquisition financing with caution for a number of reasons – if the buyer is too new in business or doesn’t have a good track record, or if there’s something with the company being acquired that the bank doesn’t like. Banks prioritize creditworthiness and historical performance leading to criteria that some acquisition targets may not meet. Celtic Capital, on the other hand, favors financing acquisitions due to the collateral value in the acquired assets. This type of financing aligns with our business strategy and has been a growing part of our business.
About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $5 million with no financial covenants.
As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.
If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at www.celticcapital.com.