The business being acquired matters
Acquisition underwriting commonly considers the target company's historical cash flow, customer concentration, operating history, assets and ability to support debt service.
The buyer matters too
Experience, liquidity, credit, equity contribution and the buyer's operating plan can affect whether a transaction is financeable and how it may be structured.
Expect transaction-level due diligence
Purchase agreements, financial statements, tax returns, debt schedules, leases, licenses and other transaction documents may be needed before approval or closing.
Common business uses
- Purchase of an established business
- Partner or shareholder buyout
- Strategic add-on acquisition
- Acquisition-related working capital
- Certain franchise acquisitions
- Succession or ownership transition
Important: Financing is not guaranteed. Availability, structure, pricing, collateral, guarantees and repayment terms depend on underwriting and the facts of the transaction.