Capital Finance Group
Business Acquisition Finance
Business acquisition finance helps you buy an existing business, buy out a partner or shareholder, or support a management buy-out or buy-in. Structuring the funding correctly can be just as important as agreeing the price, and the right package often combines more than one type of finance.
Speak to a Business Finance SpecialistBusiness Acquisition Finance
We work alongside your accountant and solicitor to help pull together a funding package that fits the deal. Engaging early gives lenders time to assess the opportunity and helps avoid funding becoming the issue that holds up completion.
Who it suits
- Entrepreneurs buying an established business
- Companies acquiring a competitor, supplier or complementary business
- Management teams completing a buy-out (MBO) or buy-in (MBI)
- Shareholders buying out a departing partner or director
How it works
- Funding may be based on the target's cash flow, its assets, or a combination of both
- Packages can bring together term loans, asset-based lending, invoice finance and property finance
- Lenders will typically expect the buyer to contribute a deposit or equity stake
- Deferred consideration from the seller can form part of the overall structure
- Lenders will review the target's accounts, forecasts, management team and plans post-acquisition
Things to consider
- Security is usually taken over the acquired business's assets and may extend to property
- Personal guarantees from the purchasers are common
- Allow for due diligence, legal, valuation and arrangement costs
- Timescales depend heavily on the quality of information and the progress of the wider transaction
- Take independent legal and accounting advice on the deal itself
Planning an acquisition or buy-out? Speak to an expert early so the funding is in place when you need it.
Finance is subject to status and lender criteria.
Interested in Business Acquisition Finance?
Planning an acquisition or buy-out? Speak to an expert early so the funding is in place when you need it.
Speak to a Business Finance Specialist