Acquisition Finance

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.