Companies, like yours, typically complete acquisitions with the goal of growing and responding to your customers’ needs more quickly. Through acquisitions, you can also access adjacent markets as well as diversify your customer base.

There are various alternatives for financing an acquisition, depending on the acquiring company’s situation and goals, and the acquisition finance structure can include a mix of funding sources. The most common alternatives for financing an acquisition include swapping stocks, cash, senior debt financing, mezzanine financing, leveraged buyouts, or equity.

We have experience working with companies of all sizes (EBITDA of £8 million to sky’s-the-limit) from a range of industries to implement a customised acquisition financing solution that meets the objectives of management teams.

Acquisition Finance Typical Uses

  • Middle-market companies with attractive growth prospects and positive cash flow
  • Incumbent management teams and active ownership with an economic stake in the company’s success
  • Minimum EBITDA of £8 million
  • Generalist sector approach

Typical Size For Acquisition Finance

  • Senior debt: £10 million – £300 million
  • Subordinated debt: £10 million – £100 million

Acquisition Finance Structural Characteristics

  • Senior debt, alongside junior capital, for a seamless, one-stop solution with a single, relationship-oriented capital provider
  • Typical maturities: 3 – 25+ years
  • Flexible payment structures, including amortising or bullet, and fixed- or floating-rate
Issuer benefits of Acquisition Finance
  • Capacity to fund across your capital structure; a one-stop shop with senior debt, mezzanine or subordinated debt, and preferred equity
  • Supportive, patient, relationship-oriented partner
  • Deep pockets to provide follow-on capital to fund your future growth
  • Industry agnostic, with deep experience financing manufacturing, service, and distribution businesses

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Acquisition Financing February 5, 2020