Pexco LLC, a portfolio company of middle-market private equity firm, Saw Mill Capital, is negotiating the acquisition of its next largest competitor in the plastic fence slats business and has asked Fifth Third Bank for its assistance in financing the transaction. The potential acquisition will allow Pexco to dominate the market and presents another opportunity for Saw Mill to leverage its deep expertise in operations strategy to create value for Saw Mill and its investors. The acquisition financing will not be easy because the range of financing alternatives is limited, the plastic fence slat industry is in a secular decline, and the potential acquisition generated significant losses in the most recent financial period. The acquisition financing proposal will require careful thought and a synthesis of the financial, operating, and ownership objectives. This case is used in the Mergers and Acquisitions elective at both the full-time and EMBA level and complements corporate financing cases that deal with the public debt markets.