From business acquisitions to buyouts and takeovers, Succession Planning Ltd will work with your business to provide a tailored acquisition funding solution to meet your requirements. Acquisition financing is the funding that is secured for the purpose of buying another business and broadly covers:
- Corporate acquisitions
- Management & institutional buy-in’s or buy-out’s
- Re-finance or recapitalisation
- Growth capital
- Leveraged buyouts
Over the past few years, the business finance market has changed immeasurably against the backdrop of challenging circumstances for the economy. This has resulted in several new lenders and new deal structures, all with their own lending criteria. When you are making an acquisition, we will support you and help you to navigate your way through the process to ensure you have all the options available to you.
What will lenders require?
When looking to secure funding for an acquisition or to underpin a growth strategy, most lenders will be looking for the following base criteria:
- A demonstrated trading track record
- Business knowledge an expertise of the product or sector
- A strong management team
- A demonstrated ability to repay the funding
- Available collateral
The options for funding a business acquisition?
Some of the more common approaches to funding an acquisition come in the shape of:
- Operating cash flow – This approach uses the cash generated from the existing business to fund the acquisition
- Shareholder equity – A new equity raise or ‘cash call’ from existing shareholders
- Acquisition finance by means of a debt solution – Asset based or cashflow backed acquisition funding and/or deferred vendor payments
Benefits of Acquisition Finance
- Expert guidance on deal structure and support with the negotiation process. These could include earn outs or deferred considerations to help spread the cost of the acquisition
- A comprehensive review of your existing and target business to fully assess and highlight your funding options
- Unsecured loans available
- Private Equity
We understand and have extensive experience with the funding solutions currently available, from loans and asset finance through to other forms of equity capital and mezzanine finance.
We ensure that all our efforts are intrinsically focused on helping our clients to achieve their aims and work in partnership to understand and fulfil our clients commercial and funding objectives.