What do Canadian financial institutions look at when funding an acquisition?

by a searcher from Laurentian University of Sudbury

3 years ago

I am presently starting out on looking to acquire a business in Canada and it seems to be overwhelming but fun at the same time.

I was wondering what financing companies look for when funding a business acquisition? I do not have an MBA but would like to do one in the future. Would not having an MBA hamper me in obtaining financing for acquiring a business? What other aspects do they look for? I am in Canada so any Canadian perspective would be appreciated!

1 like
136 views
17 comments

searcher from Douglas College

1) The Deal Itself 2) Acquisition Structure 3) Buy side team and experience 4) Market Economics for the Industry 5) All important ratios etc.

10 months ago | like reply | 0 likes

investor from University of Western Ontario

It’s called “Santa claus” - Doesn’t really exist but there are people who play the part :). For very small businesses there are govt backed programs but once you get to $1-2m in Ebitda, they aren’t effective. There’s also BDC loans for entrepreneurship which work well but can be expensive vs bank debt. But honestly nothing beats the banks for low cost leverage in Canada.

3 years ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

2 Best Ways To Find Motivated Sellers, Off-Market Deals

What are market terms for Seller Notes?

6-7x for a Self-funded Search Deal?

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.