How Lenders Assess Acquisition Finance Deals

When assessing an acquisition opportunity, lenders focus primarily on risk and repayment ability.

Areas Reviewed

  • Historical accounts
  • Cashflow
  • Sector
  • Management experience
  • Security
  • Purchase rationale

Questions Lenders Ask

  • Why is the business being acquired?
  • Can debt be serviced?
  • Is management capable?
  • What happens if performance falls?

Understanding lender criteria improves the likelihood of obtaining finance.