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.
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
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
Know the tradeoffs.
- A deal can close and still run out of operating cash.
- Seller debt must fit senior-lender requirements and repayment capacity.
Go deeper into this lane.
Put the numbers to work.
Acquisition capital tools
Explore purchase capital, buyer equity and operating reserves.
Open the tool directory DISTILLED / ACQUIREDeal analysis
Continue valuation, diligence and buyer preparation in Acquire.
Explore ON THIS SITEFunding readiness
Identify strengths, constraints and the next document to prepare.
ExploreKeep these on the shortlist.
Capital is one part
of the plan.
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.
Make your next move an informed one.
Start with your profile. Understand the tradeoffs. Prepare a clear request.