Sadly, one of the most common complaints I hear from people trying to buy businesses is when their potential lender or their investor bails out. Too often, it's at the 11th hour, after the searcher and seller have invested considerable time and money trying to make a deal.
That’s why I strongly recommend that searchers be in close communication all throughout dealmaking with at least two lenders KNOWN to prefer the kind of transaction that is pending. It’s equally important to probe the lenders to determine the circumstances that would cause them to deny your application for financing.
Similarly, too often, so-called “investors” don’t.
There is a silver lining. The reasons for rejection are something for you to think about as you pursue the deal. And, for you to realize you’ll have to cope with again if you buy the company###-###-#### when it’s time to refinance, sell or merge it.
Any war stories on this topic?