Decision Walk: Acquisition Debt Structure

The moment A $90 million acquisition can be funded with senior debt at the lowest coupon, but leverage peaks before integration benefits arrive. The cheapest structure can become the most expensive if it removes flexibility during integration. Framework Capital structure tradeoff Debt lowers headline cost but adds fixed obligations. Equity and contingent consideration cost more in ownership terms but can preserve flexibility. Reflex Minimize coupon and maximize debt. The structure matches integration risk. The best capital structure survives the downside path, not just the base case. 01 Peak 02 Flex 03 Share risk Peak leverage Step 1

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