AmiSight 1/29: Bank Underwriting Isn’t the Enemy—It’s Protection

I recently spoke with a prospect who runs a highly profitable, successful business and wants to grow through acquisitions. He plans to finance them with a bank—which makes sense.

What he wanted to skip was the bank underwriting each individual deal.

That’s not realistic. And more importantly, it’s not smart.

What is realistic is setting yourself up with the right bank in advance: building the relationship, putting a line of credit in place, and getting the bank aligned with your acquisition strategy. With the right partner, banks can move quickly and even agree upfront on the types of deals they’re willing to approve.

But they’re still going to review each deal. And that’s a good thing.

Underwriting doesn’t just protect the bank—it protects you. A disciplined, unemotional review can uncover risks that are easy to miss when you’re focused on growth and momentum. Sometimes the bank’s questions are exactly what save you from a bad acquisition.

He didn’t love my answer. We’ll see if he calls back.

But the reality is this: the goal isn’t to avoid underwriting. The goal is to use it strategically, with the right bank, as part of a smart growth plan.

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