Capital Structure Management Cost of Capital Acquisition
Capital: Definition Acquisition capital, defined as the capital
used to acquire other assets, is needed when a business decides
to grow. It is used to purchase assets like equipment,
inventory, software, or even a business itself. The purpose of
these acquisitions are, ultimately, to grow the overall profits
of a business. As such, the process of acquisition financing
requires an ability in strategic analysis of the asset to be
acquired, as well as the various financing options. Acquisition
capital is used in one of two situations: when the growing
business does not itself have the cash to grow or when the
growing business will experience greater firm value from
financing the purchase as opposed to paying out of the free cash
flow of the company. Acquisition Capital: Explanation
Acquisition capital, explained often as the fuel for company
growth, is in many cases an industry of it's own. This is due to
the fact that so many companies desire to grow usin