How Private Equity Turns Cash Flow Into Debt

The Acquisition Talk with Fexingo: Mergers, Buyouts, and Business Sales for Operators · Oct 25, 2026 · 11m · transcript

Private equity firms are increasingly using supply chain finance and reverse factoring to extract liquidity from their portfolio companies, effectively turning vendor relationships into a debt engine. In this episode of The Acquisition Talk, we examine how this mechanism works in practice, why it shifts risk from the buyer to the supplier, and what operators need to watch for when their acquirer starts optimizing working capital at the expense of long-term partnership health. We look at specific structures like dynamic discounting and approved payer programs, and ask whether this is smart…