Seller asking for proof of funds?

by a searcher

8 months ago

Starting my search and have an acquisition target in mind.  The seller stated they want to see our financials and proof of funds.  Is this a normal ask when conducting due diligence on an acquisition target?

1 like
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30 comments

member from University of Central Florida - College of Business Administration

THanks

1 month ago | like reply | 0 likes

investor from University of Birmingham

Completely normal - if you don't have a reasoable down payment to demonstrate as proof of funds (e.g. 10% - 20% of EV) then it helps to have an agreement in principle or some other documentary evidence from lenders

8 months ago | like reply | 0 likes

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