Use this button to switch between dark and light mode.

Show Me the Money: Financial Ability Representations

January 31, 2023 (2 min read)

The seller usually wants assurances that a buyer will be able to fund an acquisition at the closing, particularly if the closing is subject to a lengthy interim period between signing and closing. If a buyer is using third-party financing to fund all or a portion of the purchase price, the seller should negotiate for a representation from the buyer relating to the buyer’s financial ability to consummate the acquisition. In connection with making the representation, a buyer typically provides the seller with documents that help the seller to understand the financing terms and conditions. Explore the nuances of drafting and negotiating a buyer’s financial ability representation.

Read now »

Related Content

  • Market Standards Q4 2022 Transactions
    View publicly filed transaction documents for transactions available in Market Standards that were filed between October 1 and December 31, 2022, and valued at more than $500 million, and customize the search by adding any of 150+ deal points.
  • Fee Letter
    Find out what to expect in a fee letter issued by a bank or other financing source.

Practical Guidance Updates 
Featuring the latest updates from your Practical Guidance account.  

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+