What do Canadian financial institutions look at when funding an acquisition?

by a searcher from Laurentian University of Sudbury

3 years ago

I am presently starting out on looking to acquire a business in Canada and it seems to be overwhelming but fun at the same time.

I was wondering what financing companies look for when funding a business acquisition? I do not have an MBA but would like to do one in the future. Would not having an MBA hamper me in obtaining financing for acquiring a business? What other aspects do they look for? I am in Canada so any Canadian perspective would be appreciated!

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intermediary from University of British Columbia - Sauder School of Business

1) The Deal Itself 2) Acquisition Structure 3) Buy side team and experience 4) Market Economics for the Industry 5) All important ratios etc.

1 year ago | like reply | 0 likes

investor from University of Western Ontario

It’s called “Santa claus” - Doesn’t really exist but there are people who play the part :). For very small businesses there are govt backed programs but once you get to $1-2m in Ebitda, they aren’t effective. There’s also BDC loans for entrepreneurship which work well but can be expensive vs bank debt. But honestly nothing beats the banks for low cost leverage in Canada.

3 years ago | like reply | 0 likes

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