The financing announced after an acquisition closes can belong to the same funding story. To understand that story, follow the money through its source, stated use and date. Keep what was proposed separate from what the later record confirms.
Diversified Royalty Corp.’s acquisition of the Mr. Lube + Tires franchisor business in Canada provides a useful June–July 2026 example. The acquisition closed on June 16. An equity offering followed, then a repayment of acquisition borrowing. Adding those events together would obscure how they connect.
For an owner preparing an acquisition funding plan, the practical exercise is to build a record that can answer: which money funds which use, when, and with what still unresolved?
Start with the purpose of each source
BDC’s acquisition-financing explanation illustrates a combination of buyer equity, senior debt, vendor debt and mezzanine financing. Treat that as an illustration, rather than a required mix or an assessment of what you can obtain.
Give each source in your own proposal a separate entry. Beside it, record the intended use, the amount and currency, and the evidence for its status. If you have only a proposal, leave the drawn or paid field unconfirmed. Add the date you would need the money and the question that must be resolved before relying on it.
The DIV example gives this exercise real figures. It also shows where the disclosed record ends.
Read the acquisition funding as a partial record
DIV’s later financial statements describe funding for the cash portion of the adjusted acquisition price and related transaction and lending costs. They identify a refinancing use within one facility draw. The following selected record has no total: it combines linked events and leaves some allocations unknown.
All amounts below are in millions of Canadian dollars.
DIV cash on hand
Amount and status: C$30.0m used in the closing funding pool
Stated use and important limit: Cash purchase component and transaction/lending costs, together with other sources. Individual allocation by use is unknown.
DIV’s existing Acquisition Facility
Amount and status: C$38.5m drawn to partially fund the acquisition
Stated use and important limit: A separate facility from the subsidiary borrowing below. Its principal repayment is identified later, on July 7.
Mr. Lube Canada Ltd.’s new senior credit facility
Amount and status: C$212.5m drawn in connection with acquisition funding
Stated use and important limit: Included C$84.9m used to repay existing term-loan debt within ML LP. That repayment is a use inside this draw, not another source.
Subsequent equity offering
Amount and status: Approximately C$57.5m gross proceeds; closed July 6
Stated use and important limit: Part of the net proceeds repaid C$38.5m of Acquisition Facility principal on July 7. Net proceeds and final working-capital allocation are not established here.
The C$212.5m draw includes refinancing, so it cannot be treated as either a purchase price or a net increase in debt. The selected disclosures also contain other consideration and arrangements. This record therefore provides selected funding links, with no claim to a complete transaction funds flow.
The acquisition concerns the franchisor business; it does not establish that every independently owned franchise location was acquired.
Put intentions and completed events on different dates
The sequence matters as much as the amounts:
June 16, 2026 — acquisition closed. The later statements describe the cash and borrowing sources used in connection with it.
June 25 — intended equity uses announced. DIV said it intended to use net offering proceeds to repay Acquisition Facility borrowings and for working capital and general corporate purposes. This was an announced intention, with no completed offering or final allocation yet established by that release.
July 6 — equity offering closed. The later statements confirm approximately C$57.5m in gross proceeds, including the full over-allotment option.
July 7 — identified principal repaid. DIV used part of the offering’s net proceeds to repay the full C$38.5m principal outstanding on its Acquisition Facility. The resulting nil principal balance concerns that facility, not all corporate debt.
August 12 — statements authorized. The board authorized the financial statements that confirm those earlier events. This date is not an established first public upload time.
Our reading of the sequence is that acquisition funding, the later equity close and the subsequent repayment are connected steps. They should not be added together as an acquisition price.
Leave the unresolved cash question open
The tempting shortcut is to subtract the identified repayment from gross equity proceeds and call the remainder available cash. These disclosures do not support that conclusion.
The offering figure is gross. The repayment came from part of its net proceeds. The selected passages do not establish the final working-capital allocation after offering costs, repayments and other uses. Keep that amount unknown instead of manufacturing a balancing figure.
Make your own funding record
Use one copy of the following entry for each proposed source. These are DFC’s preparation questions, not a recommendation about your financing mix.
Source and provider: ______. Amount, currency and units: ______.
Stated use: ______. Does the source document allocate this amount to that use, or am I making an assumption? ______.
Status supported by evidence: proposed / committed / drawn / paid / unknown. Dated document and page or section: ______.
Availability or payment date: ______. What condition, decision or unanswered question could affect that date? ______.
Connection to another entry: ______. Is this a new source, a repayment using an existing source, or a component already included elsewhere? What supports that treatment? ______.
Finish by marking the questions to take to your lender or adviser. The aim is a usable record of amounts, dates and unresolved decisions. It does not determine borrower eligibility or replace the work needed for a complete financing model.
Read the underlying documents
DIV’s Q2 2026 financial statements, Note 5, provide the acquisition funding and refinancing details; Note 26 records the equity close and principal repayment. Note 2 supplies the currency and authorization-date basis.
DIV’s June 25 offering announcement supplies the intended uses at that earlier date. This historical example follows those named documents; it does not establish present borrowing terms or a current cash balance.