Acquisition finance provides a range of different financial solutions to assist with the purchase or merger of a business.
What is Acquisition Finance?
Business acquisition is one of the most popular options when exploring growth opportunities. Boosting operational capacity and profit margins through an already established and profitable business will bring broad benefits. Of course, the one stumbling block which often occurs, is how to finance the purchase.
No longer is approaching a bank a suitable option, they are just not willing to entertain such requests. Fortunately, more lenders are seeing the potential in acquisition finance, backed by large investment funds who have a need to release money. The future looks positive for anybody needing finance for a business purchase.
Solutions
Often this funding solution is developed through a mix of financing options to ensure that the very best deals are secured. There are different types of acquisition finance deals available, the following are some of our most popular:
- Equity Acquisition – this type of solution is often deployed where the business operates in an unpredictable sector where cashflow may not always be consistent. It explores the purchase of company profits through its share value.
- Debt Acquisition – the most common form of debt finance, in essence the business is purchased but remains its own entity, it operates as it always has done, in the same facility and offering the same solution to its existing client base.
- Mezzanine Finance – a mix of both debt and equity financing with a key advantage that this type of debt is tax-deductible.
- Exit Finance – also known as earnout finance, this considers the company’s full value, taking into consideration the potential future earning of the business. This will be an outright purchase of the business with new owners and shareholders.
As a growth strategy, utilising acquisition finance is a very popular and advantageous solution. It can assist a business to increase the market opportunities and gain a major advantage over their competition.
We pride ourselves on having built our reputation in securing the best acquisition financing solutions available. We endeavour to support your business purchases through every stage of the process to ensure that we achieve a successful outcome together.
We would be delighted to explore how we can offer you some support. Simply request a call back by sending us your contact details via this form and we will be in contact by return.