Financing and Lender Considerations (12%). Provide concise b…

Questions

Finаncing аnd Lender Cоnsiderаtiоns (12%). Prоvide concise but specific responses. (a) Provide the current reasonable leverage range (as a percentage of purchase price) for:   (i) a conventional commercial bank loan and (ii) an SBA 7(a) loan. (b) Identify and describe at least three financial covenants or reporting requirements a lender would likely impose. (c) Identify two non-bank financing sources and explain when each would be appropriate. (d) Identify two specific concerns a senior lender may raise. For each concern, provide a mitigation strategy. (e) How would you structure the acquisition assuming one-third of the purchase price consists of equity. Describe a simple equity structure and identify two economic or governance incentives the outside investors would likely require.