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1/ Financing acquisitions thread:
When I bought my company one of the most successful parts was the bank financing. Here is what worked for us:
1. We run a competitive RFP type process.
2. Prepared a standard package that sent to 8 different lenders with a very clear ask.
When I bought my company one of the most successful parts was the bank financing. Here is what worked for us:
1. We run a competitive RFP type process.
2. Prepared a standard package that sent to 8 different lenders with a very clear ask.
2/
3. The package included a CIM like biz and market description.
4. We also asked for and specific set of financial covenants.
5. Set up target date for proposals submission.
6. Set up data room.
7. Provided full blown financial model with base, up and down cases.
3. The package included a CIM like biz and market description.
4. We also asked for and specific set of financial covenants.
5. Set up target date for proposals submission.
6. Set up data room.
7. Provided full blown financial model with base, up and down cases.
3/
8. Coupled the request for Senior Lending with complementary governement programs (EDC, BDC, in Canada)
Main takeaways:
- Looking professional and well prepared buys credibility
- We did a lot of the heavy lifting (market research, biz analysis, projections) for the bank
8. Coupled the request for Senior Lending with complementary governement programs (EDC, BDC, in Canada)
Main takeaways:
- Looking professional and well prepared buys credibility
- We did a lot of the heavy lifting (market research, biz analysis, projections) for the bank
4/
By doing their heavy lifting we facilitated their underwriting and pointed them in the direction we wanted
- Running a competitive process creates tension and gave us leverage
- Using government programs to enhance the lenders credit risk will help with their risk appetite
By doing their heavy lifting we facilitated their underwriting and pointed them in the direction we wanted
- Running a competitive process creates tension and gave us leverage
- Using government programs to enhance the lenders credit risk will help with their risk appetite
5/ all in all it was not a difficult process. Just took some work.
