Financing Discussion

You are the owner of a business. You believe that in order for your business to grow, it needs to either expand to other locations or purchase a similar company like yours that already has a presence in the locations that you would like to expand into.

It happens that a similar company like yours is up for sale and you would like to possibly buy this company.

However, your company needs cash to try to purchase this company and does not want to obtain a loan (borrow from a bank) but rather raise the cash through financing.

Given our discussion in class, explain the different types of financing the company can use to raise capital, the cash. Which type of financing would you seek to buy this company? And why?

Give a well-reasoned and detailed argument / discussion as to why in your own words.

Provide any additional details that would solidify your point of view (s).

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