Funding for a business purchase
Financing can cover part of the purchase price and, where permitted, transaction costs or working capital. The deal must also leave enough cash to operate after ownership changes.
Acquisition Financing
Business acquisition financing.
From opportunity to ownership.
Explore loans to buy a business, acquire a competitor, or fund a buyout. Understand lender requirements, buyer equity, deal structure, and closing costs.
Funding range$500K–$30M
Financing term2–10 years
Funding typeStrategic capital
Typical funding time3–8 weeks
RepaymentDeal-specific
PRODUCT OVERVIEW
Acquisition financing,
explained.
Acquisition financing helps pay for the purchase of an existing business or ownership stake. A transaction can combine borrowing, the buyer’s own contribution and financing provided by the seller.
The financing needs to fit both the purchase and the business after closing. Alongside the agreed price, a buyer may need to plan for transaction costs, a transition period and the working capital required to keep operations running.
Lenders review the target business’s earnings, the proposed price and the buyer’s experience and contribution. They also consider how ownership will transfer and whether future cash flow can cover debt payments while supporting normal operating expenses.
The structure can include more than one source of capital, each with different repayment and security terms. Review how those obligations work together, what needs to happen before funds are released and whether the business has enough room in its cash flow after the deal closes.
Westwind helps you organize the acquisition request and compare financing structures around the purchase, transition and ongoing business needs.
Several funding sources in one deal
A transaction may combine a lender’s loan, buyer cash, and a seller note that pays part of the price over time. Each source has its own repayment and priority terms.
Supported by earnings and assets
The acquired business’s cash flow generally supports loan payments. Business assets, buyer guarantees, and a cash contribution may also be required, depending on the lender and financing structure.
Repayment after the purchase
Loan payments begin under the agreed schedule after funding. Interest, fees, and any separate seller-note payments all form part of the amount the business must support after the acquisition.
BEFORE YOU APPLY
What you’ll need to get started.
Know what lenders look for and what to have ready. Your advisor helps with the rest.
What lenders look at
Target business earnings
Financial history, quality of earnings, and customer concentration.
Buyer experience
Your background and ability to operate the business being acquired.
Transition plan
How the business will operate and support payments after the purchase.
Price & contribution
The purchase price, use of funds, and capital the buyer will contribute.
Deal structure
Seller financing, other proposed debt, and the conditions needed to close.
What to have ready
To start
- Funding amount, purpose & timeline
- Business details & revenue
- Existing financing & credit range
- Your contact details
For lender review
- Letter of intent or purchase agreement
- The target business’s tax returns and financial statements
- Purchase-price breakdown and sources-and-uses schedule
- Buyer background and ownership information
- Post-acquisition projections and transition plan
- Details of seller financing and other proposed debt, if applicable
IS THIS RIGHT FOR YOU?
Start with the business you want to buy.
Start with the purpose, the payback period, and the payment your business can support. Use these signals to decide what to discuss with your advisor.
A stronger fit
- The business you're buying makes money reliably
- You've worked in this kind of business
- You're putting in enough of your own money
A reason to pause
- The business runs on the owner who's leaving
- The books can't be trusted
- The price is more than the earnings justify
The advantages
- Uses the acquired company’s cash flow to support purchase
- Can preserve buyer liquidity
- Supports partner buyouts and management transitions
- Multiple layers-senior debt, seller note, equity-can solve the capital stack
The trade-offs
- Buyer equity is usually required
- Aggressive add-backs may not receive lender credit
- Personal guarantees, collateral, and seller subordination may apply
- Integration and key-person risk survive after closing
HOW FUNDING WORKS
From application
to funding,
step by step.
Tell us about your business once. We prepare your file, find relevant lenders, coordinate the review, and help you compare your offers.
01 profile05 steps1:1 your own advisor
01
START HERE
Tell us what you need
Fill out one form with the amount, what the money is for, and the basics of your business.
RESULTOne complete business profile
- How much you need and what you will use it for
- Sales, industry, time in business, and what you already owe
02
ADVISOR REVIEW
Go through it with your advisor
Your advisor checks the request with you, gets clear on what matters, and helps gather the documents lenders will ask for.
RESULTA file ready for lender review
- Confirm timing, payment comfort, and business goals
- Collect the statements and supporting documents needed
03
MATCH & ROUTE
We find the lenders that fit
We compare your profile with different types of funding and the requirements of participating lenders.
RESULTA focused lender submission
- Narrow the list to lenders whose rules may fit
- Send the complete file only to selected lenders
04
UNDERWRITING
Lenders review the file
Each lender makes its own decision. We handle questions, document requests, and follow-up so you do not have to chase every party.
RESULTOffers you can compare side by side
- Resolve questions and missing items in one place
- Lay out available prices, terms, payments, and conditions
05
DECIDE & CLOSE
Compare, choose, and get funded
Your advisor explains the cost and tradeoffs, then helps you finish the lender's final conditions and closing documents.
RESULTThe option you choose, taken through funding
- Compare total cost, payment, term, collateral, and flexibility
- Complete final lender conditions and closing documents
How fast you get funded, what you're offered, and whether you're approved at all depend on your business, your paperwork, and the lender. Nothing here is a guarantee of an offer or approval.
LOOK AT THESE TOO
Other options worth comparing.
Don't pick on the rate alone, and don't pick on the biggest number you're approved for. Compare the whole deal.
QUICK ANSWERS
Questions people ask about acquisition financing.
How much equity does a buyer need?
It varies by program, deal quality, collateral, seller financing, and buyer profile. Many lenders require meaningful cash equity so the buyer shares transaction risk.
Do lenders accept EBITDA add-backs?
Only when they are well documented, credible, and likely to persist. One-time expenses and owner compensation adjustments receive more scrutiny than speculative synergies.
What decides whether I get approved?
Lenders mostly look at what the two businesses earn together, whether you've run one before, whether the price is fair, and how much of your own money you're putting in. Each one has its own rules about credit, paperwork, and what it takes to say yes.
How fast can I get the money?
Plan on 3–8 weeks. It can take longer if the deal is complicated, your paperwork is slow, an outside report is needed, or the lender asks for more.
What should I compare between offers?
Ten things: the total dollars you pay back, the true yearly cost, how often you pay, how long it runs, what you put up as collateral, what you personally guarantee, the rules you agree to follow (covenants), what happens if you pay it off early, the fees, and whether the money earns more than it costs.
YOUR NEXT MOVE
See whether acquisition financing fits your business.
One application. Every option that fits. A clear path to the money.
Get funded