ACQUISITION FINANCE GUIDE
What lenders look for in an IFA acquisition
A strong acquisition story is not enough. Lenders need evidence that the buyer can service the debt, integrate the target and retain the revenue being acquired.
Five parts of a lender-ready case
The strongest submissions connect commercial logic, financial evidence and execution planning into one coherent credit proposition.
The commercial case
Explain why this target fits the strategy, how the combined business improves and where the risks sit. Make the logic specific to the firms involved.
Management information and forecasts
Provide reliable historic performance, a well-bridged forecast and clear assumptions. Lenders need to see how the numbers were built.
Debt capacity and cash conversion
Show interest and capital repayment headroom under the base case and credible downside scenarios, including transaction and integration costs.
Integration evidence
Set out ownership, milestones, client and adviser retention actions, systems migration and the reporting rhythm after completion.
Before you approach lenders
Align price and structure, validate the model, prepare the information pack and agree how management will answer the difficult credit questions.
Build a funding case lenders can approve.
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