Acquisition Finance
Funding a business purchase takes preparation.
Acquisition finance covers the funding routes that may support buying a business, buying out a shareholder or acquiring trading assets. Lenders look closely at the target, the deal structure and the buyer's ability to run the business after completion.
Common uses
- Buying a trading business
- Management buy-out or buy-in
- Shareholder buy-out
- Buying a competitor or a book of business
Who it may suit
- Directors acquiring another business
- Management teams
- Established businesses expanding by acquisition
Information lenders may ask for
- Details of the target business and the proposed deal
- Target accounts and management information
- Heads of terms or draft sale agreement
- Buyer accounts, background and sector experience
- Funding contribution available from the buyer
- Any property or assets available as security
Important considerations
- Lenders normally expect a meaningful contribution from the buyer
- Timescales are usually longer than for a straightforward facility, so early preparation matters
- Professional legal and accounting advice on the transaction sits outside what Clear Route provides
How Clear Route supports the process.
A purchase is often funded through a combination of routes rather than a single facility. Security, deferred consideration and the buyer's contribution all affect what lenders may consider.
- 01Understand the deal and the commercial objective
- 02Review what information lenders are likely to need
- 03Assess which funding routes may fit the structure
- 04Prepare the case and supporting information
- 05Approach suitable lenders and explain offers, conditions and next steps
Questions about acquisition finance
It is unusual. Lenders normally expect the buyer to contribute, and the balance of the deal affects what may be available.
Related routes
Discuss acquisition finance with a funding specialist.
You do not need to know the name of the finance product before getting in touch.