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4 Ways To Measure Background Fit For The Independent Sponsor

4 Ways To Measure Background Fit For The Independent Sponsor

Submitted by • February 7, 2020 www.attractcapital.com

Deals tend to be chased at maximum speed often with minimal time for aspiring independent sponsors to discover the most important thing – can my deal be financed? Buyers usually assume any deal can be financed, including ones with rickety deal structures.

All too commonly, independent sponsors advance through the financing process, only to find out there is no lender appetite for their deal. This is a colossal waste of time and resources. The reasons for lack of finance-ability usually boil down to the quality of the company, lack of background fit or an imbalanced price and deal structure. Each of these factors has a multitude of sub-reasons which affect a lenders overall view.

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