Buying another business is a smart way to grow. It can help you expand faster, gain new customers, and increase profits. But acquisitions require capital, and not every business has the cash upfront. That’s where business acquisition finance comes in.
What Is Business Acquisition Finance?
Business acquisition finance helps companies buy other businesses. Instead of using all your cash, you can secure funding to spread the cost over time. This keeps cash flow healthy while allowing you to grow.
Lenders offer different options, including:
- Term loans – Fixed payments over a set period.
- Asset-backed loans – Secured against company assets.
- Leveraged buyouts (LBOs) – Using the target company’s assets to finance the deal.
- Vendor finance – The seller agrees to deferred payments.
With the right funding, you can expand without financial strain.
ACQUISITION FINANCE
Rates from 4.75%
Borrow £100k – £1.25M
12 – 84 month terms
Suitable for profitable businesses
How Does It Work?
Getting acquisition financing is simple with the right support. First, assess the business you want to buy. Review its financials, assets, and potential risks. Then, choose the best funding option for your needs and growth plans.
Next, you’ll need to secure approval by submitting financial records and acquisition details to lenders. Our team at First Oak Capital makes this process smooth by connecting you with the right finance solutions.
Once approved, we help you structure the deal with terms that work for your business. Finally, you complete the purchase and start integrating the new business. With our expert guidance, you can secure the funding you need and make a smart investment with confidence.
Why Work With Us?
We help businesses secure the right funding for acquisitions. At First Oak Capital, we connect you with lenders who understand your industry and can offer financing that fits your needs.
Every business is different, so we tailor solutions to match your goals. We work quickly to ensure fast approvals, so you’re not stuck waiting for funding. Our experts guide you through every step, making the process simple and stress-free.
Buying a business should be exciting. With the right financing in place, you can focus on growth while we handle the details.
WHY FIRST OAK CAPITAL?
Helping Since 1994
Benefit from our 30 years of experience and expertise in commercial finance brokering
Competitive Industry Rates
Increase business growth and save money with highly competitive industry rates
Access Over 100 Lenders
Access to more than 100 lenders in the UK finance market
Funding Within 48 Hours
Once approved, funding can be provided in as little as 48 hours
Do you qualify for acquisition finance?
We have strong relationships with banks and lenders who can help you scale your business. However, securing large sums of capital requires more than just connections. You need to prove that you are experienced and creditworthy.
Lenders want to see that you are buying a profitable business that can handle loan repayments. They also look for a track record of success, whether through owning a thriving business or having a solid CV that proves you can run the company you’re acquiring.
Personal or cross-company guarantees may be required. Owning commercial or residential property and providing a positive net worth statement can strengthen your application.
A clear cash flow forecast is also essential. You’ll need to show expected cash generation, changes in costs, debt repayments, and overall financial stability before and after the acquisition.
With the right preparation, you can improve your chances of approval and secure the funding you need. We’re here to guide you through the process and help you present your business in the best possible light.
- Business Operations: What does the business do, and who are its customers?
- Company History & Structure: What is its background, key infrastructure, and staff numbers?
- Key Personnel: Will important staff stay? How will you manage without those leaving?
- Purchase Details: What is the price, how was it determined, and what are the payment terms?
- Motivation & Fit: Why are you buying, and what experience do you have in the sector?
- Seller’s Intentions: Why is the owner selling?
- Due Diligence: What checks have been done or planned, and who is responsible?
- Future Plans: What is the post-acquisition strategy, and is any property involved?
FAQs
Acquisition finance, or M&A financing, refers to funds raised for the purpose of buying a company, either in full or partially through the purchase of assets and shares. Banks or alternative lenders typically provide this corporate funding in the form of debt finance, which is basically a business loan.
Any UK-based business can apply, as long as its directors are UK residents. To secure financing, either the business you are acquiring or your current company must be established and profitable. Most lenders also require a personal or cross-company guarantee. Additionally, directors must be homeowners, even if their property is not used as direct security. By meeting these requirements, you improve your chances of securing the right funding for your acquisition.
You can use it to buy either the target business’s shares or its individual assets, depending on your acquisition strategy and financial goals.
Generally loans start from £100k and can go up to £1.25M
You have several debt finance options, depending on how much you need and what assets you can use as security. These options include asset finance, term loans, mortgages, invoice finance, and revolving credit facilities. Each type serves a different purpose, so choosing the right one depends on your business’s specific needs and financial situation.
- Last full years accounts for purchaser and target business
- Up-to-date management information for both
- Last three months bank statements for both
- Individuals – CVs & personal net worth statements
- Copy of the heads of terms agreement
The timeline can vary enormously and could take as little a few weeks.
No, probably not.
Have Questions? Let’s Talk.
Call us today for help securing acquisition finance. In addition, we would be happy to provide you with more information about our services. Call us on 0800 066 3677 or email us to get the ball rolling. Alternatively, if you’d like to get your finance approved today just click on the quote button, complete the short form and we’ll be in touch.
