The structure of acquisition deal

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February 17, 2020

by a searcher from Aalto University - School of Business in Vantaa, Finland

I'm a new member here and thought to finally make my first post. :)

Though I understand that each deal is in some way unique, I've been wondering what is the most common structure of the acquisition deal. Is it fully funded by the investors or is the searchers expected to invest some money (Debt or otherwise)? Are there normally some other stakeholders involved with the deal (on the buying side)?

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Reply by a searcher
from University of Pennsylvania in Indianapolis, IN, USA
It will depend on the industry, type of business and most importantly the seller. Some sellers want all cash at close and some want a sustainable income stream. I would start there and then structure the deal to meet those needs. There are options for accessing capital in the form of equity, debt and other to fill in the gaps.
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Reply by a searcher
in Helsinki, Finland
Kimmo, depends on the market, company and location. In specific, Finland can be quite friendly in certain acquisition situations, such as a company which currently does little to no exporting and also in change of control situations (owner is retiring, no one is available to take over).
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