2 min read
How acquisition funding is assessed
Lenders look at whether the combined business can comfortably service the debt — the target's cash flow, the synergies, and the price paid. A sound deal with strong cash flow supports funding; an overpriced one does not. Debt service cover across the combined entity matters.
What strengthens the case
Clear figures for both businesses, a realistic valuation, and a credible plan for the combined operation. The stronger and more visible the future cash flow, the more the deal can support.
What it means for you
Fund a deal that stacks up on cash flow. Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Can a small company acquire a larger one?
Sometimes, if the combined cash flow services the debt and the deal logic is sound. Lenders focus on the future combined position, not just your current size.
What matters most in acquisition finance?
The combined future cash flow and a realistic price. A deal that clearly strengthens cash generation can support the borrowing; an overpriced one struggles regardless of size.
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.