You move past top-line revenue to look at real EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). You verify tax returns against bank statements to ensure the profits are real.
Financing a multi-million-dollar acquisition rarely happens with cash alone. It typically involves a "capital stack": Usually 10% of the purchase price.
The previous owner keeps some "skin in the game," allowing you to pay them back over time from the company's future profits. 4. Closing the Battle
A critical question is whether the company survives without the current owner. If the owner is the only one who can bid on projects or manage key client relationships, the business may be worthless without them.
A government-backed loan to cover the bulk of the cost.
The final weeks before closing are an "emotional rollercoaster". You might be finalizing trade finance facilities to ensure there is enough immediate capital to pay subcontractors and buy raw materials for ongoing projects. At the closing table, you finally sign the documents, often moving from a sole proprietorship to a more protected structure like an LLC or S-Corp. 5. Day One and Beyond
Once a target is found, the process enters a "draining" 10-month period of due diligence. This is where most deals succeed or fail.