Bank Financing for acquisition in Spain

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March 31, 2021

by a searcher from IE Business School in Madrid, Spain

Hi everyone,

My name is Daniel Montalbetti and despite the fact that I have been following this community for some time now, I am relatively new to the Search Fund world, and I'm currently gathering information on this topic.

In line with this, I would like to ask Searchers within the Spanish region about their experience with bank financing: what is the average % of acquisition price that they have raised through bank debt, and what kind of requirements/difficulties have you faced when approaching banks.

Many thanks in advance!!

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Reply by a searcher
from IE Business School in Madrid, España
Hello Daniel, in the next few weeks my partner and I will have had different conversations with the banks regarding this issue. I will be able to give you detailed information about it. I understand that, depending on the sector in which the company is located, the financing can go between 30-70% of the enterprise value.
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Reply by a searcher
from IESE Business School in Valencia, España
It depens on the company that you are buying (have assets or not, etc). a good company can be leveraged by 50-60% without any collateral (however you have to talk to different banks till you get what you want). If you have also some assets (land, building, warehouse, etc) they can be used as collaterals too
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