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From Acquisition Target to Term Sheets: Expert Guidance Through your Entire Process
Simplify the Acquisition Financing Process with Expert Tips and Strategies
Evaluating an Acquisition Target: The Pre-LOI Stage
Thinking of acquiring a business? It is crucial to make sure you can secure the right financing for your acquisition target. When you start the acquisition financing process, keep in mind that you will not be able to begin until you have a specific target company identified. Acquisition financing can not be obtained based on a general idea of the type of target you are looking for. Whether you have a signed LOI, Letter of Intent, or not, our experts can begin to assist you in your acquisition goals.
What is an LOI?
An LOI, letter of intent, is a document between yourself and the seller of your acquisition target. In most cases, an LOI is not a binding contract, however, it clearly lays out the proposed price, what assets are included in the sale, and how much the seller will be willing to finance.
Financial Review: Understanding What You’re Acquiring Pre-LOI
Your acquisition process will begin with a thorough evaluation of potential targets. It is important to ensure your acquisition targets align with the vision and success of your business. This will help you determine the best target for your business. You will want to target a business that will provide you value and growth potential in the long-term.
Once you have a specific target in sight, a great first step is to dive deep into the financials of the business you are looking to acquire. Quickly reviewing the business’ financials is not enough. It is wise to complete a comprehensive review, so you can truly recognize the financial health and overall sustainability of the target. Be aware, lenders 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
Before you can seek acquisition financing, terms of the deal needs to be discussed and agreed upon by both you as the buyer and the seller. This is imperative as it sets up the foundation for what happens next.
It can be challenging as you and the seller determine the best possible deal for both parties. Go into this conversation knowing what you are willing to negotiate on, and what could be a dealbreaker. Be sure to consider that moving forward with unreasonable deal terms has the potential to set yourself up for failure. Be comfortable with the deal terms and leave the agreement knowing this acquisition will set your business up for long term success.
Once you have figured out the best agreement terms for both yourself and the seller. It is time to get the LOI signed. Having an LOI signed is powerful to lenders offering acquisition loans and will move your financing process along much quicker.
Strategizing Financing Options
With a clear picture of the target’s financial landscape, the next phase is strategizing your acquisition financing options. This is where working with an expert Capital Markets team can help. The right long-term partner will help your business navigate the best financing options, ensuring that you have access to loans that best suits your acquisition strategy.
Cerebro Capital: Your Partner in Acquisition Financing
Whether you have or have not signed the LOI for your acquisition, our team of Capital Markets experts are ready to assist!
Accessing Debt Capital: Fuel Your Acquisition
In your acquisition journey, debt capital is what powers the deal. For many businesses, accessing this capital can be a challenge. Not knowing where to start, what lending institutions to reach out to, and what financing options will work best, you may just miss the right match for your unique situation.
This is where Cerebro Capital’s team of experts comes in. As a long-term partner, our team stands by your side throughout, and even after, your acquisition journey. With a powerful solution tailored to acquisition financing, especially for businesses that have multiple targets, Cerebro will align with your success and get you your best, comparable term sheets.
The Power of Patented Technology, Data-Driven Matching, and Expertise
Cerebro’s platform is powered by patented technology that matches businesses seeking acquisition financing to their best options from our network of over 2,200 top bank and non-bank lending institutions. By leveraging data-driven matching tools, Cerebro offers you a competitive edge. Navigate these tools and receive mid-market insights from our experts to help your business access competitive terms that increase your chances of securing the best rates from our vast lender network.
Types of Acquisition Lenders
Our network has a variety of lending institutions that offer acquisition financing for companies looking to purchase a stand-alone business, roll up strategies, leveraged buyouts, and other acquisition activities. Typical acquisition financing terms we see from our lender network include loan amounts ranging from $2 million to $100 million, both secured and unsecured options, and conventional, non-bank, and SBA structures available. Our experts, along with our proven tech, will get you in front of the right lender types so you can access the best possible term sheets tailored to your financial needs.
Securing the Acquisition
Once you have chosen your target, negotiated a Letter of Intent (LOI), and worked with our experts to identify your best lender/loan matches you are ready to secure the acquisition financing you need.
Successfully acquiring a business is not an easy feat, but with the right partner and tools at your disposal, it can be navigated with confidence. Cerebro Capital is committed to being your long-term partner, even after the acquisition, providing you with the resources and expertise needed to align with your acquisition goals. Ready to drive your business success forward?
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