Our Manufacturing investment opportunities

Mergers and Acquisitions Funding (M&A funding)

WERGS Consultancy

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Mergers and acquisitions (M&A) refer to the consolidation of the assets of more than one business, through financial transactions between the businesses. As a business owner you are able to buy another business outright, merge with another company to make a new business, acquire some (or all) of another businesses major assets, make an offer for the businesses stock, or enter into a hostile takeover (i.e., acquiring a company by going straight to its shareholders). Although the terms Merger and Acquisition are often used together, the two terms are not interchangeable, because they do mean different things. An acquisition is where one business buys out another business outright, meanwhile a merger is where two businesses are bought together to form a new legal entity under a new corporation name.

Of course, to do any of this you will need funding, either you’ll need to have the cash available, or you will need to enter into a financing agreement to raise the funds you require. Given that Mergers and Acquisitions can be quite costly, most businesses will need to look at investment banking opportunities and acquisition financing to enable them to proceed. Wergs Consultancy have a range of equity financing options that will enable you to raise the funds you require to complete your M&A.

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Our private equity options

At Wergs Consultancy we provide a range of private equity options to enable businesses such as yours to acquire, or merge with, another business. These can be used stand-alone, or a number of private equity options can be combined. Here are some of the many ways our services can help you:

Venture capital

this is a form of private equity financing which is provided by venture capital companies. These can be used for business start-ups and emerging companies, which have a high growth potential, or have already demonstrated high growth. This is typically for smaller businesses and/or new businesses, which makes this a perfect option for acquisitions.

Debt financing

This service enables businesses to raise funds through borrowing, repaying the amount borrowed through regular payments until the full finance amount (plus interest) has been repaid.

Equity financing

unlike debt financing, equity financing does not have any repayment obligations, similar to debt financing, equity financing allows businesses to raise funds and additional working capital. Instead of repaying the loan amount, these funds are considered as an investment and the investor (i.e., the business that loaned you the money) will instead own shares in your business.

Mezzanine financing

This is a hybrid between debt financing and equity financing, which gives the lender the opportunity to convert the debt into interest in the company in the case of the business defaulting on their loan repayments. This option carries less risk than debt financing and equity financing does alone.

Syndication

this is where more than one funding provider comes together to fund the merger or acquisition of the business. This spreads the risk for lenders and helps you to acquire a higher level of funding.

Additional services

As well as providing the funding you need to acquire or merge businesses, our services can also help in the leveraged buyout, providing you with assistance in:

Valuation: before any buyout or merger can be completed, the business in question needs to undergo a valuation, so everyone involved in the process (including any lenders you are using) know the current situation of the business and use this to determine how much to loan/how much to offer in the merger or acquisition.
Due diligence: this is something else that needs to be completed before the acquisition or merger of a company, however, it isn’t a process most businesses are familiar with. Before you merge with or acquire another business, you will need to undergo due diligence. When using one of our services this due diligence process is included, giving you one less thing to worry about.
Restructuring and recapitalisation: the services we provide can help you with restructuring and recapitalisation of a businesses debt and equity to stabilise the structure of the company. A good example is the removal of preferred shares and replacing these with bonds.

We make a difference

Wergs Consultancy A&M

Our thirty years’ experience in the industry means we are fully qualified to completely understand the acquisitions and mergers process and requirements. Our expert team are on hand to explain the process to you and answer any questions you have regarding the different funding options. After taking the time to understand your business, we can recommend the most ideal funding solutions for your business and provide you advise and support throughout the entire process.

If you have any questions, or if you’d like to begin your merger/acquisition process, contact a member of our specialist team now.