Define the objective
Financing must cover the purchase, transaction costs and the working capital needed after closing.
- Write the desired outcome
- Set financial limits
- Identify deal breakers
Verify the evidence
Review financial, legal, tax, customer, employee, operational and technology information. Test important claims independently.
- Model repayment under stress
- Understand guarantees
- Protect working capital
Plan the decision and transition
Compare complete terms, downside scenarios, responsibilities and post closing requirements before committing.
- Use independent advisers
- Document material decisions
- Prepare a transition plan