Acquisition finance, also known as cashflow or leveraged finance is often used by companies looking to finance the acquisition of another company. But it can also be used by management teams looking to acquire the shares of the existing owner, commonly referred to as a Management Buyout, or an MBO. 

In some instances, the assets of a business can be used to raise funds, but often there’s a funding gap that results in either, the seller deferring payment of what is owed, or the buyer raising acquisition finance or in some cases, a combination of both. 

Acquisition finance is often riskier for the lender, so more demanding funder diligence and financial covenants is required, to measure and control the risk.  It’s also vitally important that the borrower presents a detailed plan and forecast model to give the funder the confidence that the company, under new ownership is capable of repaying the unsecured loan from future profits and cash.

There’s plenty to consider when seeking acquisition funding. At signature, we have the experts with the knowledge and skills to source the right solution for you!

Acquisition finance, also known as cashflow or leveraged finance is often used by companies looking to finance the acquisition of another company. But it can also be used by management teams looking to acquire the shares of the existing owner, commonly referred to as a Management Buyout, or an MBO. 

In some instances, the assets of a business can be used to raise funds, but often there’s a funding gap that results in either, the seller deferring payment of what is owed, or the buyer raising acquisition finance or in some cases, a combination of both. 

Acquisition finance is often riskier for the lender, so more demanding funder diligence and financial covenants is required, to measure and control the risk.  It’s also vitally important that the borrower presents a detailed plan and forecast model to give the funder the confidence that the company, under new ownership is capable of repaying the unsecured loan from future profits and cash.

There’s plenty to consider when seeking acquisition funding. At signature, we have the experts with the knowledge and skills to source the right solution for you!