How much headroomwill the lending really leave you?
If you are funding a deal through a bank, invoice finance or other lending, this report tests the forecast we have built against your lender's covenants, showing how tight the terms will feel and how exposed you would be if trading fell short, before you sign.
- Fixed fee
- Agreed in writing before we start, never on a running clock.
- A bolt on service
- Available alongside our Acquisition Cash Flow Model.
- Your side of the table
- The lender's covenants, seen from the buyer's point of view.
- A separate report
- Your covenant position, set out in its own deliverable.
How tight will the lender's terms actually feel?
If you are financing an acquisition through a bank, invoice finance or any other lending, that funding will come with covenants - the financial tests you must stay within or risk a breach. The lender assesses those covenants for its own purposes, to decide whether and on what terms it will lend. The Covenant Review Report looks at exactly the same covenants, but from your side of the table.
It takes the forecast we have already built in your Acquisition Cash Flow Model and tests it against the covenants in your lending arrangement, across each scenario in that forecast. The point is to show you, before you sign, how tight those terms are likely to feel, how much headroom the forecast leaves you, and how exposed you would be if trading fell short of the base case.
Your covenant position, set out plainly
A separate written report, built on the model we have already prepared for you.
Every covenant tested
We test the forecast against each covenant in your lending arrangement, across each scenario in the model.
The position period by period
The report shows where the forecast stands against each covenant in every period across the term.
Where it comes closest
We identify where and when the forecast comes nearest to a breach, so you can see the pressure points.
Any breach, and what drives it
Where a covenant would be breached under a scenario, we draw out what causes it, so you understand the reason and not just the outcome.
Covenant headroom
A clear view of how much margin there is before a breach, and how sensitive that margin is to the assumptions.
A separate report
Delivered as its own deliverable, so your covenant position is set out clearly in its own right.
The basis of this review
This is a bolt on service, available only alongside our Acquisition Cash Flow Model, because it depends on the forecast prepared under it. It tests a forecast, which is a model of assumptions, against the covenants you provide, and it shows the position that forecast implies, not the position that will arise in practice. It does not include negotiating covenants with your lender, advising whether the terms offered are reasonable, or introducing alternative funding, and it does not advise whether you should proceed. It informs your judgement; the decisions remain yours.
Financing through lending? See the covenant position before you sign.
Book a free intro call and we will explain how the covenant review works alongside your cash flow model, and what it would cost. A quick chat about the service and a quote, no pressure.