Transworld M & A Advisors

Transworld M & A Helps Clients Obtain Debt & Equity Financing

 

St. Petersburg, FL -- (ReleaseWire) -- 07/25/2018 --Transworld M & A Advisors is a concern that facilitates mergers and acquisitions for companies that are valued at $5 million on the low-end up to $100 million on the high end. When a company is interested in expansion, financing is going to be necessary. Debt & equity financing are two different possibilities, and they each have their benefits and their drawbacks.

Debt financing involves taking out a loan that must be repaid to raise the capital that is necessary to acquire another business. Equity financing is the act of selling interests in a company to investors that will become shareholders. Transworld M & A Advisors has a great deal of experience with debt & equity financing, and they can help clients that are interested in either form of financing.

One of the advantages of debt financing over equity financing is the fact that the lender does not own any portion of the business that is owned by the borrower, so total control is retained. Plus, with debt financing, the company that is borrowing the money simply has to repay the loan with interest over the agreed-upon period of time. If the infusion of capital allows the business to be considerably more profitable, the lender would not share in it at all. On the other side of the coin, if equity funding was utilized, the people that exchanged capital for equity would share in these explosive profits.

There is no uncertainty when it comes to principal and interest payments that must be paid when debt financing is utilized, so it is easy to make projections and budget accordingly. Tax advantages are realized when debt funding is obtained, because the interest payments can be deducted on the borrowing company's tax return. Finally, raising money through debt financing is a more simple process, because there is no need to comply with state and federal securities laws.

Transworld M & A Advisors is definitely well positioned to provide advice with regard to the pros and cons of debt & equity financing when they are facilitating acquisitions. This company has developed a strong track record of success, and their upward trajectory continues to turn heads within the middle market corporate community.

About Transworld M & A Advisors
Transworld M & A Advisors facilitates middle market mergers and acquisitions, and they have a great deal of expertise with debt & equity financing.