top of page

How will the acquisition be financed?

Curious about acquisition

How will the acquisition be financed?

Acquisitions can be financed through various means such as cash, debt, equity, or a combination of these. The specific financing structure will depend on several factors, including the size of the acquisition, the financial position of the acquirer, the availability of financing, and the terms and conditions of the acquisition agreement.

In India, acquirers can also use external commercial borrowings (ECBs) to finance the acquisition, subject to certain conditions and regulations by the Reserve Bank of India (RBI). ECBs are loans in the form of bank loans, buyers' credit, and suppliers' credit availed of by resident entities from nonresident entities, and can be used for various purposes including financing of import of capital goods, modernization/expansion of existing production units in the manufacturing, services and infrastructure sectors, etc.

Empower Creators, Get Early Access to Premium Content.

  • Instagram. Ankit Kumar (itsurankit)
  • X. Twitter. Ankit Kumar (itsurankit)
  • Linkedin

Create Impact By Sharing

bottom of page