Oak Street Funding, a First Financial Bank company specializing in lending to CPAs, said it was doubling the loan limit for clients to support mergers and acquisitions, estates, technology investments and initiatives focused on business growth.
The company said it is now providing loans of up to $ 30 million to CPA firms in niche verticals supported by its lending team, a 50% increase in previously available loan amounts. Oak Street said its decision to increase available capital for CPA business needs came in response to the current market, in which many companies pursue mergers and acquisitions and revise their succession plans as baby boomers continue. to retire.
“Recent data shows that loan applications are on the rise,” Oak Street Funding CEO Rick Dennen said in a statement on Monday. “Meanwhile, company valuations have risen as CPA practices see the costs of mergers, acquisitions and other strategic opportunities outstripping the comfort level of traditional sources of capital. With our credit limit increasing, Oak Street Funding continues to demonstrate our agility to respond quickly to changing market conditions.
The pace of mergers and acquisitions appears to have picked up this year, with a large number of companies reporting deals in the past few weeks alone, as the economy continues to improve this year and businesses need to additional staff to develop in a context of persistent labor shortages.