Business Acquisition Loan Guarantees
Sponsors need bankable credit support to close on time and on terms. We underwrite the target, the structure, and the sponsor, then issue a private repayment guarantee sized to the risk. Lenders get a defined backstop. You get certainty, speed, and cleaner leverage without overreaching on personal guarantees.
Snapshot:
Partial repayment guarantees for U.S. business acquisitions in the $5M–$100M enterprise value range. Typical coverage 30%–75% of senior principal. Fees tied to expected loss and structure. Collateralized through SPV controls, all-asset liens, cash sweeps, and sponsor support agreements.
Who This Is For
Sponsors
- Independent sponsors and small PE seeking senior debt comfort.
- Search funds and consolidators with repeatable playbooks.
- Operators backing MBOs or carve-outs with limited hard collateral.
Transaction Profiles
- Enterprise value $5M–$100M.
- EBITDA positive. Clear cash conversion.
- Add-on roll-ups with proven integration plan.
What You Get
| Item |
Detail |
| Guarantee |
Partial repayment guarantee on senior term debt. Coverage sized to risk and covenant pack. |
| Underwriting |
Target QoE review, cash flow durability, customer concentration, churn, working capital, capex, and downside cases. |
| Controls |
SPV holdco, all-asset lien, blocked accounts, cash sweep triggers, step-in rights, consent on material changes. |
| Speed |
Indicative terms in 3–7 business days after data room. Full commit on completion of diligence and legals. |
How It Works
- Eligibility screen.
Send teaser, LTM and YTD financials, quality of earnings if available, CIM or deck, buyer profile.
- Indicative terms.
Coverage range, fee range, key covenants, data requests.
- Diligence.
Deep dive on revenue quality, margins, WC seasonality, legal, tax, ESG and any regulatory items.
- Structuring.
Intercreditor, guarantees, lien package, reporting cadence, cure rights, waterfall.
- Commitment.
Execution of guarantee facility with conditions precedent and monitoring plan.
- Ongoing monitoring.
Quarterly packs, KPI triggers, covenant testing, board observer where agreed.
Structures We Support
First-Loss Layer
We cover the initial loss slice to a set cap. Maximizes comfort for senior lenders.
Pari Passu Share
Shared loss on a defined percentage of principal. Balanced risk split with the bank.
Performance Triggers
Coverage steps down on outperformance and steps up on stress with stronger controls.
Pricing and Fees
| Component |
Range / Basis |
Notes |
| Annual Guarantee Fee |
2.0%–5.0% on covered principal |
Linked to expected loss and covenant strength. |
| Underwriting Fee |
$32,500 per million US$ |
Covers diligence and structuring. Third-party costs pass-through. |
| Cure / Claim Fees |
Case by case |
Applied if triggers and cure mechanics are engaged. |
Eligibility and Data Room Checklist
- 3 years financials, YTD, and monthly KPIs. QoE if available.
- Customer concentration, churn, pricing, and backlog detail.
- Working capital cycles, seasonality, and capital expenditure plan.
- Org chart, key management bios, compensation, and retention plans.
- Purchase agreement status, sources and uses, pro forma structure.
- Debt model with downside cases and covenant headroom.
- Legal, tax, and compliance flags with mitigation plan.
Closing Timeline
| Phase |
Day |
Output |
| Eligibility & NDA |
1–2 |
Checklist issued. Data room opened. |
| Indicative Terms |
3–7 |
Coverage and fee range, key covenants. |
| Full Diligence |
8–25 |
Final structure. Intercreditor draft. CP list. |
| Commitment & Close |
26–35 |
Guarantee executed. Funding timetable set. |
FAQs
Do you replace personal guarantees?
Not fully. Our guarantee can reduce or narrow personal guarantees. Final position depends on lender policy and structure.
What coverage can I expect?
Typical 30%–75% of senior principal. We size to risk, covenants, and recovery quality.
Will banks accept this?
We structure with lender committees in mind. Intercreditor and collateral controls are designed to be bank-grade. We engage early with the lead lender.
Minimum size and sectors?
Minimum covered principal $1M. Most cash-generative sectors considered. We avoid targets with binary regulatory or legal risk.
Request A Loan Guarantee
Share EV, EBITDA, sector, sources and uses, and target close date. We will respond with eligibility and terms.
Request Terms
Disclaimer: Financely acts as arranger and advisor through regulated partners. We do not hold client funds. All guarantees are subject to underwriting, KYC, AML, sanctions screening, legal documentation, security perfection, and approvals by lending counterparties and insurers. Professional audience only.