Acquisition finance

Funding growth through strategic acquisitions

Acquisition finance is often used by business owners who’re looking to fund the acquisition of another company. But it can also be used by management teams looking to purchase shares through a Management Buyout (MBO).

In some cases, a business’s assets can be used to raise finance, but there may be a gap that results in either the seller deferring payment or the buyer raising acquisition finance, or in some cases, a combination of both.

Acquisition finance is generally riskier for lenders, so they will conduct more demanding due diligence and require financial covenants, so that they can measure and control the risk. It’s also important that you present a detailed plan and forecast model to give the funder the confidence that the company, under new ownership, can repay the unsecured loan from future profits and cash.

There are many factors to consider when seeking acquisition funding, but our Commercial Funding experts have years of knowledge and experience in finding the right solutions.