Minimising risks when assessing your M&A funding options

Focus must be given to allocating risk — especially given the large sums often involved in M&As

Funding experts say that any source of finance – be it debt, vendor finance and private equity – has its pros and cons.   Picture: iStock

Decisions, decisions. There are obvious pros and cons with the various sources of finance to fund mergers and acquisitions (M&As), but the decision will often hinge on what is readily available and appropriate to each individual scenario.

Once that’s finalised, the careful process of allocating risk begins and the selection of the most appropriate mechanism will also require careful consideration.