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The Bootstrapped Startup’s Guide to Debt Financing

Lighter Capital

Growing on your own steam may sound like a risky bet — providing an open window for competitors to overtake you in the market — but even in the tech industry, first-mover advantages are short-lived. But what do you do when you need to extend your startup’s runway so you can scale quickly and capture more of the market?

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Navigating the Risk-Reward Equation in Mergers and Acquisitions: Unveiling the Dynamics of Financing Models

Sun Acquisitions

Mergers and acquisitions (M&A) have long been strategic maneuvers for companies seeking growth, market dominance, or increased efficiency. As organizations embark on these transformative journeys, one critical aspect that demands meticulous consideration is the financing model.

Finance 59
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Matching Financial Strategies to Business Acquisition Goals

Sun Acquisitions

Growth and Expansion: If your primary objective is to expand your business and penetrate new markets, your financial strategy should reflect this ambition. Consider options such as raising capital through equity financing or securing a bank loan to fund your expansion plans.

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The Art of Business Acquisition: Strategies for Success and Financing Choices

Sun Acquisitions

Business acquisition can be a game-changer, opening doors to new markets, technologies, and revenue streams. However, mastering the art of business acquisition involves more than just signing a deal; it requires careful planning, tailored strategies, and astute financing choices.

Finance 59
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What Is Optimal Capital Structure?

Andrew Stolz

The optimal capital structure of a firm is the right combination of equity and debt financing. It allows the firm to have a minimum cost of capital while having the maximum market value. The lesser the cost of capital, the more the market value of the company. Why is the Optimal Capital Structure Important?

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What Are M&A Sources of Capital?

Benchmark Report

First, the financing needs to be raised with consideration of the company's operating cash flows. For example, if the business uses debt financing, it should have sufficient funds to cover the interest and repay the debt.

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What is the Modigliani–Miller Theorem?

Andrew Stolz

The basic theory assumes a perfectly efficient market, without issues of taxes and other financial costs. The first proposition of the M&M says that the value of leveraged firms (capital structure with a mix of debt and equity) and unleveraged firms (capital structure with only equity) are the same.