Hire best-in-class Target financing experts

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Target financing specialists to projects that need execution, now.

Target financing is a way of funding your private equity investment. It is often not the only method of fund-raising for an investment, but can be one of the most important tools for maximizing return potential. Although it has a higher cost to raise capital than other means, but it does have some upsides as well. What are they? Let’s find out!

Target financing involves raising one lump sum from a small number of investors who want to invest in a particular private equity vehicle that usually has been identified by the targeted company being acquired or invested in by that vehicle. Private equity funds generally have a minimum of $1 million or more to invest.

Uses of Target financing

(a) A public company that needs outside funding of some sort to pay off debt or provide funds to invest back into the company.

(b) A private company that needs outside investment to grow or invest back into the company.

(c) An individual who wants to invest a lot of money into one of the above, usually a company that is going public or going through an acquisition.

Normally, target financing is done on a different class of stock compared to what may eventually be issued by the targeted company. This allows the equity raise up front for the private equity fund and later on helps protect some sort of tax benefit for investors later on.

Who can adopt Target Financing?
Target financing can be used by both sellers and buyers in an acquisition. The benefit to the buyer is often that they get favorable terms on the financing of their acquisition, which can make a deal more likely to happen. The seller usually gets a higher premium on the sale of their company, since they are getting money upfront before other investment means come into play.
Sellers can get money quicker than if they were doing normal private equity transactions, which tend to take longer than 12 months. Incredibly, sometimes up to 18 months or more for a target company or entity that has significant private equity involvement. Usually it only takes up to 6 months for the deal to happen, even if it’s not ideal for both parties.

How is Target Financing carried out?

Target financing can be done in multiple ways. It can be done as a stand-alone investment via the investor buying shares directly from the targeted company or it can be done as part of a larger deal through an IPO. There are many variations on the deal, but the main thing is to find someone who will buy your company outright. That means no other investors are involved in it besides the potential buyer, which will help keep control in your hands.

Target financing can take several forms. It can be done as a stand-alone investment via the investor buying shares directly from the targeted company or it can be done as part of a larger deal through an IPO. There are many variations on the deal, but the main thing is to find someone who will buy your company outright. That means no other investors are involved in it besides the potential buyer, which will help keep control in your hands.

Benefits of Target Financing

The benefit to the target company is that it reduces the cost of financing compared to other methods, which often involves banks. It also helps keep control in the good hands of management and not outside investors right away, which is often favored by management.

The benefit to the private equity fund is that it can get their money quicker than other types of investments, which can help them get other deals done faster. It also gives them some assurance that the deal will happen since they are getting an upfront payment for their investment. Target financing usually doesn’t involve too much due diligence either, unlike other methods where investors usually want a lot more information about what they are investing in up front before making a commitment.

Another upside is that target financing allows investors to take advantage of favorable terms since they are investing before other investment means come into play. The downside is that target financing tends to be more expensive than other methods of financing, even though it might seem like an attractive bargain at first.

The seller can get lump sum payments for target financing, but sometimes only in the form of warrants or options. The upside is that they can get money quicker than if they were doing normal private equity transactions, which tend to take longer than 12 months. Incredibly, sometimes up to 18 months or more for a target company or entity that has significant private equity involvement. Usually it only takes up to 6 months for the deal to happen, even if it’s not ideal for both parties. The downside is that target financing tends to be expensive, even though it might seem like an attractive bargain at first.

Target financing also allows investors to take advantage of favorable terms since they are investing before other investment means come into play.

Hire the best Target financing specialists in 2,900+ industries

Fintalent is the invite-only community for top-tier M&A consultants and Strategy talent. Hire global Target financing consultants with extensive experience in over 2,900 industries. Our platform allows you to build your team of independent Target financing specialists in 48 hours. Welcome to the future of Mergers & Acquisitions!

Why hire top Target financing experts?

Trusted Network

Every Fintalent is exclusively invited and vetted.

Ready in 48h​​​

Hire efficiently. Your M&A team is ready in 2 days or less.​​​​

Specialized Skills​

Fintalents are best-in-class - and specialized in 2,900+ industries.​

Code of Ethics​​

We guarantee highest integrity and ethical principles.​​​

Selected Clients and Partners

Frequently asked questions

Most frequent questions and answers

What clients usually engage your Target financing Consultants?

We work with clients from all over the world. Our clients range from enterprise and corporate clients to companies that are backed by Private Equity or Venture Capital funds. Furthermore, we work directly with Family Offices, Private Equity firms, and Asset Managers. Most of our enterprise clients have dedicated Corporate Development, M&A, and Strategy divisions which are utilizing our pool of Target financing talent to add on-demand and flexible resources, expertise, or staff to their in-house team.

How is Fintalent different?

Fintalent is not a staffing agency. We are a community of best-in-class Target financing professionals, highly specialized within their domains. We have streamlined the process of engaging the best Target financing talent and are able to provide clients with Target financing professionals within 48 hours of first engaging them. We believe that our platform provides more value for Corporates, Ventures, Private Equity and Venture Capital firms, and Family Offices.

Our Hiring Process – What do ‘Community-Approach’ and ‘Invite-to-Apply’ mean?

‘Invite-to-Apply’ is the process by which we shortlist candidates for the majority of projects on our platform. Often, due to the confidential nature of our clients’ projects, we do not release projects to our whole platform but using the matching technology and expertise of our internal team we select candidates who are the best fit for our clients’ needs. This approach also ensures engagement with our community of professionals on the Fintalent platform, and is a benefit both to our clients and independent professionals, as our freelancers have direct access to the roles best suited to their skills and are more likely to take an interest in a project if they have been sought out directly. In addition, if a member of our community is unavailable for a project but knows someone whose skill set perfectly fits the brief, they are able to invite them to apply for the role, utilizing the personal networks of each talent on our platform.

Which skills and expertise do your Fintalents have?

The Fintalents are hand-picked and vetted Target financing professionals, speak over 55 languages, and have professional experience in all geographical markets. Our Target financing consultants’ experience ranges from 3+ years as analysts at top investment banks and Strategy consultancies, to later career C-level executives. The average working experience is 6.9 years and 80% of all Fintalents range from 3-12 years into their careers.

Our Target financing consultants have experience in leading firms as well as interfacing with clients and wider corporate structures and management. What makes our Target financing talent pool stand out is the fact that they have technical backgrounds in over 2,900 industries.

How does the screening and onboarding of your Target financing talent work?

Fintalent.io is an invite-only platform and we believe in the power of referrals and a closed-loop community. Members of our community are able to invite a small number of professionals onto the platform. In addition, our team actively scouts for the best talent who have experience in investment banking or have worked at a global top management consultancy. All of our community-referred talent and scouted talent are subject to a rigorous screening process. As such, over the last 18 months totaling more than 750 hours of onboarding calls, of which only 40% have received an invite-link after the call.

What happens if I am not satisfied with my Target financing consultant’s work?

During your initial engagement with a member of our Fintalent talent pool with no risk. If you are not satisfied with the quality of your hire for any reason then we are able to find a replacement at short notice. There is no minimum commitment per project, but generally projects last at least 5 days and can last 12+ months.

Interested in our invite-only community of tier-1 Target financing experts?

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