Match capital to the plan
The size, timing, integration period, and cash-flow profile of acquisitions influence the appropriate facility and covenant structure.
Preserve operating flexibility
A facility that supports the first acquisition but constrains working capital, integration spending, or later opportunities may undermine the broader program.
Build lender confidence
Reliable reporting, disciplined acquisition criteria, integration performance, and a credible pipeline help lenders assess both downside protection and repeatability.
Questions for Owners
Questions worth considering
- How much capacity remains after closing and integration?
- What performance would pressure covenants?
- Can the company support acquisitions during an operating downturn?