CunningnessPublished by Raises.com

A Raises.com research library

How acquisitions actually get financed

Working numbers from deals that closed: what lenders require, what each layer of the capital stack costs, and the mistakes that end a deal before diligence starts.

What this is

Cunningness collects the mechanics of acquisition finance in one place: the coverage ratios a bank actually underwrites to, the price of junior capital, what collateral is worth, and the anti-patterns that cost buyers six figures before they have seen a set of books.

It is published by the team at Raises.com, who structure and finance these transactions for a living. Every figure is attributed to a published source and linked, so a reader can check it rather than take it on trust. Nothing here promises an outcome; the numbers describe what lenders and investors have required on real transactions.

Start here

The capital stackEvery layer that funds an acquisition, who provides it, where it sits in priority, and what it costs. What lenders requireSponsor net worth, revenue and margin bands, coverage ratios, and the documents asked for first. Deal killersThe anti-patterns: a binding contract signed too early, a target too big to run, and debt priced to strangle. Seller financingSeller notes and rollover equity: how the gap between the loan and the cash gets closed. GlossaryEighteen terms defined plainly, from DSCR and advance rates to co-GP equity and first loss capital. Questions and answersTen direct answers to the questions buyers ask before their first lender conversation.

Where the numbers come from

The working figures on this site come from the capital markets team at Raises.com describing transactions they carried to close, published in full with chapters and a transcript:

  • The capital markets episode: coverage ratios, advance rates, revenue-based financing pricing, and the anti-patterns.
  • A client on the record: a Texas HVAC services platform financed with an institutional senior credit facility, junior debt, a seller note and seller rollover equity.
  • The Raises.com case studies: documented client closes across acquisitions, funds and REIT offerings.

Educational content. Not financial, legal or tax advice, and not an offer of any security. Terms on any given transaction depend on the business, the buyer and the lender.

Working on an actual deal?

Raises.com builds the fund or SPV structure, the offering documents, the financial model and the data room for an acquisition, then introduces the debt and equity that closes it. Published flat fee, no success fee, no carry.

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