£2m to £10m
Acquisition finance
You need capital to fuel your M&A strategy
Whether expanding your own business or pursuing a buy-and-build strategy, we can help you get there.
Acquiring another company can be an effective way to scale quickly and efficiently, enabling you to increase market share, take advantage of synergies and expand into new product ranges or territories.
Acquisition finance puts the capital in your pocket to do just that, with a loan of up to £10m that can be used for M&A alongside other growth strategies.
A great fit if you require:
Flexibility
Invest in a variety of growth initiatives, with tranching available to suit your needs
Growth headroom
Typically up to 12 months interest-only period, with capital and interest amortising over the remaining term
No loss of control
Covenant-lite funding that doesn’t dilute your equity
Lluis Faus
Chief Executive
vLex
“The funding will play a big part in vLex achieving its targets for growth and we are delighted to have funded the acquisition of Justis with the loan.
“The team quickly gained a strong understanding of our business and built a working relationship characterised by excellent communication and trust. Decisions were made swiftly and Kim ensured that the offer was the right fit for us.”
How Growth Lending can support your acquisition
Successful businesses should have the opportunity to grow by acquiring further companies should they wish to. However, not every business will meet the acquisition finance requirements set out by traditional lenders.
Comparatively, Growth Lending can provide capital for an acquisition in several ways; via a £2m-£10m term loan; by leveraging against your own business’ sales ledger; or by leveraging against the sales ledger of the target company.
Operating on a flexible basis means we can tailor our approach to match your requirements. Plus, raising acquisition finance in this way significantly increases business liquidity, leaving headroom within your facility to accommodate day-to-day working capital needs, as well as enabling purchases that would not otherwise be possible.
FAQs
View all FAQsAcquiring another business can be a quick and efficient way to secure growth, but it often requires more cash than a firm’s normal operating budget.
Acquisition finance refers to the funding used specifically to purchase another business.
Usually complex in structure, acquisition finance requires a tailored approach and the acquisition itself requires thorough planning.
The financing of an acquisition can come from multiple sources, with one of the key challenges finding the appropriate mix of financing that offers the lowest cost.
Acquiring another business enables you to expand your company’s reach geographically and demographically, as well as streamline and increase your economies of scale. You can also strengthen your own position too, by purchasing a competitor or their assets.
Utilising business acquisition finance to acquire a business can help to increase market share, bringing significant economies of scale, which can help to reduce your unit cost. It can also help to minimise risk in your business, via diversification of market or technology. Business acquisitions also help to accelerate the adoption of new skills and technologies across the existing workforce.
Our funding offers flexibility so that you can use funds for whatever you feel will best support your firm’s growth.
This means that rather than having to apply for separate acquisition-specific finance, you can encompass acquisitions into the strategy for your existing funding lines. This also means you can borrow larger sums for multiple uses at once – for example, making a strategic acquisition, while also raising working capital.
Enquire now
Ready to accelerate growth? Let’s see how we can support you.
Access more cash, at an earlier stage than what is offered by non-specialist lenders
Facilities that are never off-the-shelf – we tailor our facilities to your individual needs
Flexible use of funds, including development and working capital
