Business Acquisition Finance Checklist

Written and reviewed by Corey Marino Founder & Finance Broker, FBAA member M-354085 · Diploma-qualified finance broker

Last reviewed 18 August 2026 · About Corey →

Buying a business combines a finance assessment with a commercial transaction. The lender needs to understand what is being purchased, how the price was formed, whether earnings support the debt and what the buyer contributes. The buyer still needs independent accounting and legal due diligence; a finance approval does not validate the business.

The answer first

Prepare the signed or draft sale agreement, price allocation, asset list, historical financials, current management accounts, buyer experience, contribution evidence, forecast and a post-settlement working-capital budget. Make the finance approval and due-diligence conditions clear before the contract becomes unconditional.

Separate the purchase price

Show how the price is allocated across equipment, vehicles, stock, work in progress, contracts, customer relationships, intellectual property and goodwill. Tangible assets can often be identified and valued; goodwill depends more heavily on sustainable earnings and transferability.

The allocation should reconcile with the sale agreement and accountant's advice. Do not relabel goodwill as equipment merely to make the security appear stronger.

What the lender may test

• historical revenue, gross margin and maintainable earnings;
• customer and supplier concentration;
• reliance on the outgoing owner;
• recurring versus project revenue;
• lease terms and required landlord consent;
• employee, licence and key-contract continuity;
• buyer's industry and management experience;
• existing and proposed debt repayments;
• buyer contribution and cash remaining after settlement; and
• assets or property available as security.

A strong past year is not enough if a key contract ends at settlement. Conversely, a well-documented continuity plan can explain how customers, staff and systems will transfer.

Buyer contribution and working capital

The buyer may need to contribute cash or equity. Show where it comes from and whether it is genuinely available. Then keep acquisition contribution separate from working capital. A transaction can settle successfully and still fail operationally if the buyer has no cash for payroll, stock, tax or supplier terms.

Prepare a 13-week cashflow covering settlement, first wages, stock replenishment, insurance, lease bond, professional fees and the first finance payments. Stress-test slower customer receipts and unexpected transition costs.

Due diligence remains the buyer's job

An accountant can test earnings, tax records, working capital and price assumptions. A lawyer can review the sale agreement, warranties, restraints, leases, licences and contract transfer. The lender's review is for its own credit decision and does not replace either adviser.

Verify assets and security interests. If vehicles or equipment form part of the sale, record serial numbers, condition, ownership and any payouts. The PPSR business-assets guidance explains why registered interests should be identified and resolved.

Common structures

An acquisition can use one or more of asset finance, a secured or unsecured business loan, property-backed finance, buyer cash and documented vendor finance. Each component has different security, term and cost. A short unsecured facility for goodwill plus separate equipment finance may create several repayments; one secured facility may simplify cashflow but place more security at risk.

Compare the blended total cost and conditions, not one headline rate.

Settlement checklist

Before settlement, confirm finance conditions, entity names, asset schedules, insurance, lease and licence transfers, contribution funds, seller payouts, payment directions and the opening working-capital balance. No material change should be concealed from the lender.

Our plumbing acquisition case study is a genuine anonymised settlement involving contracts, vehicles, equipment and a customer book. It demonstrates one historical structure, not a universal deposit, rate or approval rule.

X Lend can coordinate the finance comparison with the buyer's professional advisers. Formal approval and acceptable security remain subject to the lender.