Funding different business transactions
Business acquisition funding may be relevant for:
- Buying an established business
- Acquiring a competitor or complementary business
- Mergers and strategic acquisitions
- Management buyouts
- Partner or shareholder buyouts
- Succession transactions
- Expansion through acquisition
Each transaction has its own funding considerations. An acquisition with significant tangible assets can be structured differently from a business where much of the value sits in goodwill and future earnings.
What lenders look at when financing a business acquisition
Building the finance structure around the deal
Acquisition finance may involve more than one source of funding.
Depending on the transaction, the overall structure can include senior acquisition debt, finance against eligible assets, working capital facilities, purchaser equity and vendor components where appropriate.
The structure needs to consider not only whether the purchase can settle, but whether the combined business has sufficient liquidity and debt-servicing capacity after completion.
Winterfold works through these requirements with the buyer and relevant advisers before approaching suitable lenders.
Finance coordinated with the wider transaction
Business acquisitions typically involve accountants, lawyers, vendors and potentially corporate or M&A advisers.
Winterfold's role is focused on the finance. We can coordinate the lender process alongside the wider transaction timetable and work with your professional advisers where appropriate.
Legal, tax, valuation and accounting advice should remain with the relevant qualified professionals.
Related services
Asset Finance
Finance for equipment, machinery, plant, trucks, vehicles, fleets and other business assets.
Commercial Property
Finance business premises, investment property and commercial development.
Debt Advisory Services
Review existing facilities and broader debt structures.
Business acquisition finance FAQs
How much can I borrow to buy a business?
There is no standard percentage. Borrowing capacity depends on earnings, serviceability, purchase price, security, buyer contribution, industry and lender appetite.
Can goodwill be financed?
Potentially. Some lenders will consider acquisition finance where part of the purchase price relates to goodwill, but assessment tends to place greater emphasis on sustainable earnings, serviceability and borrower strength.
What deposit or equity contribution is required?
It varies by transaction and lender. The buyer's contribution is considered alongside earnings, security, purchase structure and overall risk.
How long does acquisition finance take?
Timing depends on transaction complexity, due diligence, information availability, valuation requirements and lender approval processes. Finance should be considered early in the transaction timetable.