Seller asking for proof of funds?
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?
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by a searcher
in Seattle, WA, USA
in Seattle, WA, USA
2yrs ago
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by an investor
2yrs ago
from University of Birmingham in London, UK
from University of Birmingham in London, UK
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
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by a searcher
2yrs ago
from INSEAD in Kirkland, WA, USA
from INSEAD in Kirkland, WA, USA
Ted - what's your recommended sweet spot? I won't be using outside equity but I am conscious about showing too much. Is showing a bank statement with 15-20% of the EV sufficient without showing other investment accounts and home equity?
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