Taking over a business usually requires a substantial investment. Finding sufficient financing, especially for somewhat larger loans, can be quite a task. In quite a few acquisitions, financing runs into difficulties. PMV’s financing solutions help. Conveniently, you can also combine them.
Are you considering taking over a business? If so, you obviously need to assess the maximum price you are willing to pay for it, and within what timeframe you hope to recoup that investment. The method of financing the acquisition price – a mix of equity and external input – is an important choice. Typically, banks expect you to be able to finance about a third of the acquisition price through an equity contribution. With subordinated financing from PMV, you can increase equity: a great way to convince your bank and then pay the full acquisition cost with a traditional bank loan.
It is one of the financing instruments offered by PMV. Besides subordinated loans to bridge the gap between bank financing and equity, you can also turn to PMV for guarantees or a minority stake in the capital. Annually, PMV provides guarantees in around 800 acquisition files. In some 60 takeover deals, PMV provides subordinated loans. We offer longer terms and flexible repayment options where you often only have to repay the loan at the end of the term. This leaves more cash in your business to invest and repay the banks. Whatever form of financing you choose, a good mix is very important. Balanced financing avoids you getting into trouble (especially in the first difficult years) with repaying your bank debts.