Introduction
At its core, financing involves using a fund which incurs the lowest cost for the borrower and provides the highest rate of return for the financier. As this model constitutes the realisation of the contemplated M&A deal for the borrower and a lucrative investment for the financier, a debt structure will be negotiated to ensure that both parties are satisfied. While this holds true for every project, M&A projects usually require various combinations of financing instrument due to market risks and the complex nature of each transaction for the parties involved. These parties may represent:
the buy-side and the sell-side of the transaction;