Buyer equity
Lenders want to see meaningful skin in the game, and the required amount varies considerably by deal quality and lender.
Acquisition financing
You’ve found a business worth buying.
Understand what you can pay, how much equity you need and how the acquisition will be funded before the letter of intent fixes the price and structure.
I help Alberta buyers structure and finance acquisitions, and I get involved before the letter of intent, not after.
Why timing matters
Bring financing into the deal before the clock starts.
Most buyers call after the LOI, when price, structure and the exclusivity deadline are already set. If financing cannot support the deal, the choices narrow quickly: contribute more equity, renegotiate or walk.
01
You know your real ceiling before you negotiate, not after
02
Your offer is more credible to the seller, because you can speak to how it’s funded
03
You structure the deal with fundability built in, including share vs. asset purchase, vendor takeback, earnout and working capital adjustments
Sellers may discount offers from buyers who cannot demonstrate a credible financing plan. Showing up with a model and a lender conversation already underway is a competitive advantage.
How acquisitions get funded
A capital stack, not a single cheque.
Goodwill is the hard part. In an asset-light services business, most of the purchase price is goodwill, and senior lenders lend against it reluctantly. That gap is what structure has to solve.
Senior term debt
From a bank, ATB, or a credit union, secured against the target’s assets and cash flow.
BDC
Longer amortization and the ability to lend against goodwill and intangibles, which matters enormously in service businesses with few hard assets.
Vendor takeback
The seller finances part of the price. It signals confidence to lenders and often bridges a valuation gap.
Asset-based lending
Useful where the target has strong receivables and inventory but uneven earnings.
Mezzanine and private credit
Fills the gap between what senior debt will advance and what you can fund with equity.
Canada Small Business Financing Program
Government-guaranteed financing through participating lenders; useful in smaller deals, with real restrictions on eligible uses.
What I do
From the first model through closing.
I’ve been through this from the inside: I’ve run the acquisition of a competitor several times our size, raised the debt for it, and then done the integration work.
Financial model
A full three-statement model of the acquired business with the debt structure layered in, showing whether it services and where the covenants sit.
Deal structure
Coordinated with your accountant and legal counsel on share vs. asset purchase, tax and risk allocation.
Financing
Build the credit package, approach the right lenders in parallel and negotiate terms.
Due diligence support
Quality-of-earnings preparation, working capital analysis and diligence support, including identifying what changes after closing.
Deal discipline
Not every deal should get done.
Financing mandates may include a fee payable on closing. My role still begins with testing whether the acquisition works. If the cash flow cannot support the debt, customer concentration makes the earnings too fragile, or the seller’s add-backs do not survive scrutiny, I will tell you plainly before you commit more capital and time.
Relevant engagement
Financing and integrating a transformational acquisition.
A buyer acquired its largest competitor, secured competing financing proposals and integrated the combined business.
Read the engagement →$20M+Acquisition financing
3×Sales after acquisition
Frequently asked questions
What buyers need to know before committing.
How much equity do I need?+
It varies more than a rule of thumb can capture. Quality of earnings, asset backing, industry and lender appetite all move it. A vendor takeback can materially reduce what you need in cash. I can give you a realistic range for your specific deal on a first call.
Can I finance the whole purchase with debt?+
Realistically, no. Lenders want to see the buyer at risk. What I can do is minimize the equity requirement through structure, including vendor financing, earnouts and a properly layered debt stack.
How long does it take?+
From engagement to funding, generally three to six months, running alongside your LOI-to-close timeline rather than after it. A well-prepared file with clean target financials can move faster; complicated due diligence is usually what stretches it.
I’m buying the business I already manage. Does that help?+
Yes, considerably. Management buyouts can be viewed favourably by lenders because the incoming owners already understand the customers, the team and the operations. The challenge is usually that management has strong operating credibility and limited capital. That’s a structuring problem, and it’s solvable.
Does the target’s industry matter?+
Meaningfully. Equipment-heavy businesses in industrial services, construction, and manufacturing have collateral to lend against. Asset-light service and professional firms are harder and lean more on cash flow lending, BDC, and vendor takebacks.
When should I bring you in?+
Before the LOI, ideally. Once you’ve identified a target and seen preliminary financials is the right moment.
What does it cost?+
Engagements are either a mandate or a scoped project. A mandate is a work fee through the process plus a fee payable on closing, priced to the size and complexity of the deal. A scoped project is a fixed fee, priced to what's being built. You get a written proposal before you commit to anything, and the first conversation is free.
Start a confidential conversation
Talk to me about the acquisition.
If you’re evaluating an acquisition, a first conversation costs nothing.