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Corporate acquisition financing

OP offers you expertise in planning and financing a company acquisition on a holistic basis. We can offer a financing solution that best suits your need.

When acquiring a business becomes topical, we can offer a variety of options for financing the transaction together with our financing partners. Corporate transaction financing may cover buyers, a target firm and a new company to be established as a result of the transaction. 

Bank loan is the most widely used method of financing acquisitions

A bank loan can be raised to finance a company acquisition if the company's post-transaction future prospects are favourable in the hands of new owners. Following the transaction, the borrower repays the loan using the company's cash flow. As the most widely used financing method for corporate transactions, the bank loan can be supplemented, for example, with loans from other financiers or financing from owners. Raising a bank loan may require collateral of the buyer. But then again, collateral and special loan terms and conditions, or financial covenants, enable the buyer to influence the cost of the loan.

When a corporate acquisition involves not only buying the business itself but also related machinery and equipment, the buyer can also make use of asset-based finance. This means that the loan is secured by an asset, such as a production machine. 

Suitable financing for every transaction from OP

The size of the corporate acquisition plays a major role in selecting a financing solution. Small transactions are usually financed through the buyer's funds and the bank loan. The bigger the transaction and the more complicated the arrangements for the transaction, there will be a need for several financing methods and financiers. Bigger transactions require diverse expertise and understanding of how corporate transactions affect, for example, taxation and financing and concern for personnel.

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A corporate transaction in sight?

Every corporate transaction is unique, and financing finds its way to good corporate transaction projects. Please contact our experts and we will together find the solutions that best suit your company's needs!

When a corporate transaction is carried out as a sale of business, the acquirer buys the business of the acquiree, i.e. for example machinery, equipment, premises, personnel and business name as agreed. The acquiree's financial and legal obligations do not transfer to the acquirer. Following the acquisition, the business continues to be run in the name of the new company.

In the sale of shares, the acquirer buys the shares or majority interest in the target company. The target company's previous financial and legal obligations remain valid irrespective of the change of ownership. In general, the target company continues to operate in its former name and business ID.