Here are a few things to consider when understanding the buyer's motives, economics and resources:

• Why are they valuing your business as they are? 
• Does the buyer's board of directors share the passion and commitment of a successful combination 
• What is the currency and who is funding it? 
• Operating capital 
• Capital formation 
• Debt 
• Equity (can the cap table afford it) 
• Lender details and expectations 
• If outside money is being used, have you met with the stakeholder to understand their willingness to fund the deal and what the ROI is for them? 
• Is the cash in hand (can you see it on the balance sheet)? 
• Why work with an M&A advisor? Best interests, can be the bad guy…
   

Summary:

• Proof of funds takes many shapes and sizes
• Seller needs assurances of the resources
• Work with an advisor like Revenue Rocket

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