M&A Debt Financing.
The debt portion of an M&A deal has to be sized against what the combined, post-transaction entity can actually service — not just the acquirer's existing cash flows in isolation.
Leverage Sizing · Post-Deal Debt Capacity · Lender Structuring
Where This Applies
- The debt portion of a deal needs sizing against pro-forma, post-transaction cash flows.
- Leverage has to stay within what the combined entity can service without straining operations.
- A mix of senior and subordinated debt may be needed depending on the leverage the deal requires.
- Lenders need a clear view of the pro-forma entity, not just historicals.
How We Approach It
We model the combined entity's pro-forma cash flows and leverage before sizing the debt component, then structure the facility mix — term debt, subordinated tranches, or both — to match what the deal can genuinely service post-closing.
Why EquiFin
- Independent advisory — we structure and negotiate, we do not lend ourselves.
- 60+ active lender relationships across PSU banks, private banks, NBFCs and private credit funds.
- One point of contact from structuring through to disbursement.
Frequently Asked Questions
How is M&A debt financing sized?
It's sized against the combined, post-transaction entity's projected cash flows and leverage capacity, not the acquirer's standalone financials alone.
Can M&A debt financing include subordinated tranches?
Yes — where senior debt alone can't support the leverage the deal needs, a subordinated or structured tranche is often layered in alongside it.
See what documents lenders typically ask for — Documents Required for a Corporate Loan →
60+ Active Lender Relationships · Independent Advisory, Not a Lender
Size the Debt Against What the Deal Can Actually Carry.
We model post-deal debt capacity before we approach lenders.
Discuss M&A Debt Financing