Prominence Bank

Will Prominence Bank help arrange financing for an M&A transaction?

In many cases, yes. One advantage of working with us on an M&A deal is that we can also tap into our financing capabilities to support the transaction. For instance, if you’re acquiring a company and need a loan or investor partners, our Corporate Finance team can work alongside the M&A advisors to structure that financing – be it through a syndicate of banks, issuing a bond, or finding a private equity co-investor. We might utilize structured finance techniques for leveraged buyouts, or help you raise mezzanine capital. Because we can issue instruments like guarantees or even an SBLC, we could secure certain obligations in the deal (like an escrow or performance guarantee for post-merger commitments). Each deal is unique: sometimes the buyer is cash-rich and no extra financing is needed (in which case, great); other times, a creative solution is required – maybe using the target company’s assets as collateral for a loan. We have a lot of tools at our disposal and we’ll explore them to get the deal done. Keep in mind, for very large deals, we may bring in partner institutions if the financing need exceeds our single capacity, but we will coordinate that for you. Essentially, we won’t just drop you at “advice” – if you need help finding the money to close the deal, we roll up our sleeves and help make it happen.

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