
Loan Covenant Risks for Business Buyers
Loan covenants can make or break an acquisition: miss a financial or operational condition and you risk penalties, waivers, or even loan acceleration. Manual tracking (spreadsheets, periodic reviews) offers control but is slow and error-prone; tech-enabled platforms automate ratio checks, trigger real-time alerts, and streamline lender reporting. Many buyers win with a hybrid—use software for continuous monitoring and keep human oversight for negotiation, edge cases, and judgment calls.