Assist with Purchaser Financing
Most Middle Market company purchases involve leverage. The buyer will typically look for asset-based lending alternatives to support the purchase of your company. The amount of leverage available to purchasers depends not only on “market conditions” but also the specific combinations of assets your company has on its books. Over the past 10 years buyers have been able to borrow between 60% to 80% of the total company to support purchases. Leverage in Middle Market private equity purchases in early 2019 averaged nearly 4X cash contributions (or about 80% of the purchase price).1
Therefore, your support and assistance with providing information to lending institutions will be critical to consummating a sale. Fortunately the PQ Seller’s Vault you have populated with your company information will become very helpful to your purchaser – and their lending institutions through BorrowPQ. Speedy access to up-to-date information will help your buyer acquire debt financing – and help you close your deal!
PQ’s Asset Multiple Valuation tool will help you itemize and put a value to your core business assets. These in turn can be disclosed to the Buyer and included in your negotiations to support both your asking price and the buyers financing strategies.
PQ can provide a list of preferred third-party advisors for Step 12 including Bankers, Other Lending Institutions, Tax Consultants, Lawyers, Accountants and more.
Contact Us at any time for help or to provide feedback.
