From Acquisition Target to Term Sheets: Expert Guidance Through your Entire Process

Evaluating Acquisition Targets: The Pre-LOI Stage

Thinking of acquiring a business? It is crucial to secure the right acquisition financing for your targeted company. A 2024 Deloitte M&A Trends Survey found that acquisitions backed by structured financing strategies and early lender engagement are 35% more likely to close successfully. Remember, you need a specific company in mind—financing cannot be obtained based on a general idea. Whether you have a signed LOI (Letter of Intent) or not, Cerebro Capital can begin supporting your acquisition goals with tailored guidance.

What is an LOI? (Letter of Intent)

An LOI is a document between you and the seller of your acquisition target. Typically, it is a non-binding agreement that outlines the proposed purchase price, included assets, and any seller financing terms. Learn when to seek financing for a business acquisition.

Financial Review: Understanding What You’re Acquiring Pre-LOI

• Conduct a deep dive into the business’s financials; lenders base funding decisions on these profiles.
• Don’t rely on quick assessments. Comprehensive due diligence uncovers long-term value and sustainability.
• Lenders and advisors will verify your data during the process, emphasizing accuracy and transparency.

Be aware, both debt capital (banks and non-banks) and private equity funding will make decisions on whether or not to provide funding based on the financial profile of your specific target company.

Reaching Terms with the Seller

Negotiating agreeable terms with the seller is critical. These terms lay the groundwork for your financing process and future success. Be prepared to stand firm on dealbreakers and recognize areas for flexibility. Move forward confidently with clear, reasonable agreements that position your business for lasting growth. Once settled, a signed LOI accelerates lender interest and acquisition loan approval.

Strategizing Your Acquisition Financing Options

With clarity on the target’s finances, it’s time to weigh your financing pathways. Work with an expert Capital Markets team that can steer you toward:

• Traditional Bank Loans: Lower overall cost of financing for well qualified transactions but could take longer with strict criteria.
• SBA-Backed Loans: Government-backed, lower-risk options that are excellent for established businesses, offering 75–85% guarantees, flexible terms, and credit-access advantages. The maximum SBA loan is $5 million.
• Private Equity: Offer flexible capital solutions, often in exchange for equity stakes.
• Mezzanine Financing: Mezzanine loans help bridge funding gaps.. Read our Acquisition Financing Guide for more.
• Non-Bank Lenders: Provide easier access to debt capital but often at higher interest rates.

Cerebro Capital is the platform that helps you identify and match with the best fit – whether that’s a traditional bank, SBA lender, private debt fund, mezzanine provider, or non-bank lender.

Cerebro Capital: Your Partner in Acquisition Financing

Whether or not you’ve secured your LOI, Cerebro Capital’s Capital Markets experts are ready to assist help you navigate every step. With deep market insight and a vetted network of over 2,200 lenders, Cerebro has supported a wide range of deals—from SaaS buyouts to fast-food franchise expansions. For instance, an independent sponsor leveraged the network to grow a SaaS acquisition from a $5 million to a $10 million loan, reducing the interest rate by 33% and extending maturity by eight years. Our platform leverages real-time data to efficiently match borrowers to lenders, helping you acquire businesses confidently and quickly. Cerebro’s acquisition financing services are trusted by thousands of mid-sized companies: discover more about our solutions.

Accessing Debt Capital to Fuel Your Acquisition

Accessing the right debt capital is a frequent hurdle for acquisition financing. Unsure of where to turn or which offers suit you best? Cerebro Capital streamlines your search, aligning you with lenders offering:

• Loan sizes from $2 million to $100 million
• Secured and unsecured options
• Conventional, non-bank, and SBA loan structures

We support a broad range of acquisition types: stand-alone, roll-up strategies, leveraged buyouts, and more. See how data-driven matching can speed your process.

The Power of Patented Technology, Data-Driven Matching, and Expertise

Cerebro’s platform is built with patented technology and AI-powered, data-driven matching tools. Our expansive network of over 2,200 bank and non-bank lenders, combined with practical expertise, gives you a competitive edge in securing the right financing. Our experts deliver mid-market insights, ensuring offers are optimized for your acquisition’s unique requirements. Learn more about our data-driven approach.

Types of Acquisition Lenders in Our Network

Our lender network offers a range of structures for businesses seeking:

• Stand-alone acquisitions
• Roll-up and expansion strategies
• Leveraged buyout financing

Lenders include major banks, credit unions, private equity, online lenders, and specialty finance providers. Our technology and experts deliver side-by-side term sheets, so you can compare and select the best option efficiently.

Find real-world acquisition financing case studies across industries, including SaaS, fast food franchises, marketing agencies, and IT companies:

• SaaS Acquisition Financing
• Marketing Agency Acquisition
• Franchise Expansion through Acquisition

Securing the Acquisition with Cerebro Capital

Once you’ve selected your target, negotiated your LOI, and matched with lenders using Cerebro Capital’s platform, you’re ready to secure the right acquisition financing.

Success hinges on:

• Thorough due diligence verified by both your team and the lender
• Understanding and leveraging the acquired company’s assets
• Clear negotiation of terms and detailed review of lender requirements

Cerebro Capital remains committed to your long-term growth, offering resources, technology, and expert guidance even after your deal closes. Let’s accelerate your business success.

Frequently Asked Questions About Acquisition Financing