Introduction
Financing an acquisition requires preparation. Lenders want clear documentation, strong deal logic, and borrower readiness. This checklist ensures you have everything needed to move quickly and get approved in 2025.
Buyer Requirements
- Personal tax returns (3 years).
- Personal financial statement.
- Resume showing management or industry experience.
- Credit report (650+ preferred).
Target Business Requirements
- Business tax returns (3 years).
- Year-to-date P&L and balance sheet.
- Customer concentration analysis.
- Lease agreements (if applicable).
- Inventory and equipment list.
Deal Requirements
- Signed Letter of Intent (LOI).
- Draft Purchase Agreement.
- Seller financing terms (if applicable).
- Projections and assumptions post-acquisition.
Lender Requirements
- DSCR calculation (1.25x+ preferred).
- Collateral (business assets, possibly buyer collateral).
- SBA Forms (if using SBA).
Process Timeline
- Prequalification: 1–2 weeks.
- Underwriting: 3–6 weeks.
- Approval & Closing: 2–4 weeks.
Pro Tips
- Organize documents early.
- Be transparent with lenders.
- Work with an intermediary to avoid wasted time.
Conclusion
Preparation makes the difference between a smooth closing and a failed deal. Use this checklist as your roadmap.
