M&A Foundations · glossary
The requirement — strict in public takeovers, common in auctions — that a buyer show its financing is fully committed before it signs, so there is no risk of the money failing to arrive at completion. Sellers increasingly expect certain-funds-quality proof even on private deals. Chapter 5
Explained in Chapter 5, Preparing for a Deal, of M&A Foundations.
Funding lined up. Cash from the balance sheet, debt from banks, or new equity — whatever the source, it must be arranged early, because sellers now expect it. In auctions you will hear the term certain funds: the standard, borrowed from public takeovers, that a bidder should have binding financing commitments with only minimal conditions before its bid is accepted. A private seller cannot force this on anyone, but a bid “subject to financing” is worth a fraction of its…Read Chapter 5, Preparing for a Deal →
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