Introduction
Financing a business acquisition requires preparation, strategy, and execution. Unfortunately, many buyers sabotage themselves by making avoidable mistakes. Here are the top five acquisition financing mistakes Yaw Capital helps clients avoid.
Mistake 1: Underestimating Capital Needs
Buyers often fail to budget for working capital, inventory, and transition costs — leading to funding shortfalls post-closing.
Mistake 2: Poor Preparation for Lender Requirements
Missing documents or incomplete financials cause delays and, sometimes, denials.
Mistake 3: Not Exploring SBA Options
Some buyers assume SBA loans are only for small deals. In reality, SBA financing can fund acquisitions up to $5M with favorable terms.
Mistake 4: Overleveraging Debt
Taking on too much debt without sufficient equity creates risk for both the buyer and the lender.
Mistake 5: Waiting Too Long to Start Financing Conversations
Buyers who wait until late in the deal process to secure financing often lose the deal altogether.
Conclusion
Avoiding these five mistakes increases your chances of approval, speeds up the financing process, and keeps your acquisition on track. Yaw Capital ensures every deal is structured to succeed.
