Business Acquisition Gap Funding | CLOSE

Business Acquisition Gap Funding | CLOSE

Business Acquisition Gap Funding

Address equity gaps, lender hold limits, and timing frictions in acquisitions and management buyouts. Submit one file through CLOSE to receive a lender-grade memo, a term sheet comparison from qualified counterparties, and a dated plan to closing.

The Problem

Purchase agreements set firm calendars. Senior lenders cap hold sizes or reduce leverage after diligence. Sellers expect cash at close with limited flexibility. The result is a defined shortfall across equity, fees, and working capital at completion.

The Impact If You Wait

Extensions raise costs and weaken negotiating position. Earnout and seller paper become more expensive. Key employees lose confidence and integration planning stalls. The window to close can narrow quickly.

Solve It Through CLOSE

CLOSE arranges capital that fits the SPA calendar and the senior lender requirements. Instruments include preferred equity to complete the equity check, mezzanine behind the senior facility with clear intercreditor terms, and short-dated bridge financing tied to refinance, dividend recap, or asset sale. Intake and document classification are AI assisted with human credit sign off. Execution runs through regulated counterparties. Where required, transactions are conducted under a broker dealer chaperone.

Target Profile And Quality Of Earnings

Revenue mix, customer concentrations, margin stability, and cash conversion. Independent QofE and working capital peg analysis preferred.

Transaction Structure

SPA terms, rollover equity, seller notes, earnouts, and escrow. Sources and uses with fees and taxes itemized and dated.

Debt Capacity And Covenants

Senior hold, pricing, amortization, and covenants mapped to base and downside cases. Intercreditor framework where applicable.

Capital Options To Close The Gap

Instrument Use Case Tenor Security And Enhancements Typical Sizing
Preferred Equity Equity shortfall at signing or pre close 2 to 4 years Distribution waterfall, consent rights, governance protections 10 to 30 percent of capitalization
Mezzanine Debt Behind senior for hold limits and covenant buffers 3 to 5 years Intercreditor agreement, junior security, covenants 5 to 20 percent of capitalization
Acquisition Bridge Short-dated close with refinance or recap as takeout 6 to 18 months Share pledges, cash control, step in rights Event linked sizing against takeout
Working Capital At Close Close the peg and integration costs 12 to 24 months revolving AR and inventory eligibility, borrowing base rules Aligned to peg and cycle

Terms are indicative and depend on jurisdiction, sector, collateral, and market conditions.

Risk And Bankability Signals

Risk Theme Relevance Lender Takeaway
Quality Of Earnings Normalization, customer churn, and margin durability Independent QofE and working capital peg raise confidence
Leverage And Coverage Opening leverage and DSCR set residual capacity Forward free cash flow and hedging policy support structure
Retention And Integration Key people and systems are critical to plan delivery Retention pools and 100 day plans reduce execution risk
Intercreditor Alignment Rights across senior, mezzanine, and preferred equity Clear cure periods and step in mechanics enable additional capital

Coverage Metrics And Sizing

Metric Definition Typical Threshold
Total Leverage Debt to EBITDA at close Varies by sector. Often 3.0x to 5.0x
Interest Cover EBITDA to interest expense At or above 1.80x with rate hedging where relevant
Free Cash Flow To Debt Service Post capex and working capital cash to obligations Base case at or above 1.20x with downside tolerance
Working Capital Peg Normalized level required at close Evidence from trailing periods and seasonality

Execution Workflow

1. Screening And Fit

Target summary, SPA terms, QofE status, model, debt terms, and sponsor profile. Binary read in three business days from a complete file.

2. Indicative Terms

Structure, pricing, tenor, covenants, intercreditor outline, and conditions precedent with a dated timetable to closing.

3. Diligence And Approvals

KYC and AML, legal and financial diligence, insurance, and intercreditor alignment. Approvals tracked in the portal.

4. Documentation

Facility agreements, security package, cash management, reporting schedules, and reserves. E signature and checklist completion.

5. Funding Mechanics

Conditions precedent met. Proceeds released under counterparty procedures to meet SPA funds flow. Post close integration plan monitored.

6. Monitoring

Covenant tests, cash conversion, and performance to the 100 day plan tracked inside CLOSE.

Submit Your Acquisition File On CLOSE

Provide sponsor details, SPA, QofE status, model, senior terms, and timetable. Receive indicative terms and a dated plan to closing.

Submit Your Deal on CLOSE

Financely Group provides advisory and arrangement services for professional counterparties through regulated partners. We are not a lender and we do not receive, hold, or transmit client funds. Participation is limited to accredited or professional counterparties where applicable. Transactions are executed through regulated institutions and, where required, under a broker dealer chaperone. All mandates are best efforts and subject to KYC, AML, sanctions, verification of materials, third party approvals, and market conditions. Minimum preferred transaction size is USD 10 million.

Get Started With Us

Submit Your Deal & Receive a Proposal Within 1-3 Working Days

Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.


All submissions are promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.

Express Application Submit Your Deal
Request a Proposal
Request a Proposal / Submit a Deal

Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.

Trade Finance

Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.

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Project Finance

Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.

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Acquisitions

Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.

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For Banks

Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.

Submit a Request

Once we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.

Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.