Navigating Financial Covenants in Business Acquisitions

This chapter explores the role of financial covenants in borrowing for business acquisitions, specifically in the context of a commercial cleaning company. It examines the implications of EBITDA in lending relationships, particularly when financial performance declines, and how this impacts interactions between lenders and borrowers. The discussion also highlights the complexities of financial management during downturns, including negotiation strategies and the potential risks of asset liquidation.