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Alianza Updates

Alianza Perspective: Test Acquisition Payments Before Closing

An acquisition needs financing payments the business can support and enough cash after ownership changes. Alianza Partners asks buyers to separate purchase funding from transition capital and review operating cash after ordinary expenses, necessary investment and proposed debt payments.

Evaluate seller financing or other capital layers using actual terms, required consents and the combined repayment burden. Owners facing a maturity may choose a sale, creating opportunities without eliminating diligence on earnings, liabilities, customer continuity and transition work.

Build a supported operating plan and clear capital requirement. Lower rates may improve it, but should not be the condition that makes the acquisition possible.

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