BUSINESS / ACQUISITION CAPITAL

Acquisition Financing

Acquisition financing is deal architecture: buyer equity, seller participation, lender capital, working capital, and the target company's ability to carry the structure after closing.

01 / UNDERSTAND THE STRUCTURE

Finance the next chapter.

Acquisition financing combines buyer equity, lender debt and sometimes seller financing to fund a business purchase. Include transaction expenses and post-close working capital in the plan.

Where it can fit

  • Buyers of an operating business
  • Acquisitions with verifiable cash flow

Common uses

Business purchaseTransaction costs where eligiblePost-close liquidity
02 / THE QUALIFICATION PICTURE

What shapes the file.

  • Target cash flow and adjustments
  • Buyer experience and equity
  • Debt service after transition

General product guidance. A provider’s actual criteria and review determine eligibility.

Documents to prepare

  • Letter of intent and purchase terms
  • Target financials and tax returns
  • Buyer background, equity evidence and transition budget
Build a document checklist
03 / READ THE FINE PRINT

Know the tradeoffs.

  • A deal can close and still run out of operating cash.
  • Seller debt must fit senior-lender requirements and repayment capacity.
Understand the full cost
↳ / CAPITAL, CONSIDERED

Go deeper into this lane.

T / CAPITAL, CONSIDERED

Put the numbers to work.

04 / CAPITAL, CONSIDERED

Keep these on the shortlist.

THE BIGGER PICTURE

Capital is one part
of the plan.

Q / CAPITAL, CONSIDERED

A question worth asking.

How much capital should I plan beyond the price?

Prepare a separate budget for fees, closing adjustments, transition costs, inventory and a working-capital reserve. Amounts depend on the deal.

YOUR NEXT MOVE

Make your next move an informed one.

Start with your profile. Understand the tradeoffs. Prepare a clear request.