Acquisition Finance

Tailored Funding To Help You Buy, Merge, Or Invest In Other Businesses

Acquisition finance is specialised funding used to purchase another business or a significant stake in a business. It can be used for mergers, acquisitions, management buyouts (MBOs), or strategic investments. We work with specialist acquisition finance lenders and private equity networks to help structure the right financing for your acquisition strategy — combining senior debt, mezzanine layers, vendor finance and equity into a single, well-aligned package that supports your deal timeline.

Types of Acquisition Finance

Choose the structure that best fits your deal, your team and your growth plans.

Senior Acquisition Debt

Traditional bank or private credit lending structured around the target business's cash flow and balance sheet. Forms the core of most acquisition finance packages, typically providing the largest slice of consideration at the lowest cost.

Management Buyout (MBO) Finance

Specialist funding packages that let an existing management team acquire the business they run. Combines senior debt, mezzanine layers and often equity to support the team's purchase of shares from current owners.

Vendor & Earn-Out Finance

Structures where the seller provides part of the consideration directly, often combined with deferred payments, earn-outs or rollover equity. Useful for owner-led sales where the vendor wants to share both deal risk and future upside.

Common Use Cases

Buying a competitor

Acquire a direct competitor to consolidate market share, absorb their customer base, or capture synergies in operations, marketing and procurement.

Strategic partnership deal

Fund the purchase of a partner business to vertically integrate, enter a new geography, or bring a complementary capability in-house under a single ownership structure.

Succession & owner exit

Finance the next generation of owners, a key employee, or a third party stepping into a founder's shoes. Critical for owner-managed businesses planning a structured handover or full retirement sale.

Management buyout (MBO)

Support the existing management team to acquire all or part of the business they run — preserving continuity for staff, customers and suppliers while delivering a clean exit for current shareholders.

Buy-and-build growth

Acquire a platform business and then bolt on smaller targets using the same facility. A proven strategy for ambitious operators building a market-leading group through serial acquisitions.

Frequently Asked Questions

What is acquisition finance and how does it work?

Acquisition finance is the funding used to buy a business. It's structured around the target company's cash flows and balance sheet rather than the buyer's personal finances, and typically combines several layers (senior debt, mezzanine, vendor finance and equity) into a single package that covers the purchase price, transaction costs and any working capital required to run the business post-completion.

How much can I borrow to fund an acquisition?

Lenders typically provide senior debt of 3–5× the target's adjusted EBITDA, with mezzanine and equity layers stacked on top to reach a total deal value of 5–8× EBITDA. Your broker will model the optimum structure based on the target's cash flow, the equity you can commit, and the level of personal or vendor rollover available.

What types of businesses can I buy with acquisition finance?

Most lenders will consider profitable trading businesses with predictable cash flow, a defensible market position, and an experienced management team staying in place. Sectors we frequently support include professional services, manufacturing, healthcare, distribution, technology, and B2B services. Turnaround situations, very early-stage businesses, and some regulated sectors may need specialist lenders.

How long does an acquisition finance deal take to complete?

From initial term sheet to completion typically takes 8–16 weeks. The most time-consuming stages are financial and legal due diligence on the target, plus negotiating the share purchase agreement. Your broker will help you scope the timetable, prepare a clean information pack from day one, and run a competitive process to keep lenders focused on your timeline.

What is the difference between senior debt, mezzanine and equity?

Senior debt is the cheapest layer — secured against the business and repaid first. Mezzanine sits between senior debt and equity, costs more but tolerates higher leverage, and often includes a PIK (payment-in-kind) component. Equity is the most expensive but most flexible layer, taking the residual risk and reward. A typical acquisition stacks all three to balance cost, dilution and lender appetite.

What do I need to prepare before applying?

A strong application typically includes 2–3 years of accounts for the target business, a credible business plan showing the deal thesis and post-acquisition plan, management CVs, an outline of the funding structure you're seeking, and any heads of terms already agreed with the seller. Your broker will help you package this into a single, lender-ready information memorandum that shortens the approval timeline.

Planning An Acquisition?

Speak to our team about your deal and let us structure the right acquisition finance package to support your growth strategy.

Apply Now Contact Us