Business Acquisiton

Flexible funding to buy, grow, or invest in businesses

What Is Business Acquisition Finance?

Business acquisition finance is a specialised type of funding that enables individuals, companies, and investors to purchase an existing business or acquire a controlling stake in another company. Whether you're buying out a partner, supporting a management buy-out (MBO), or acquiring a competitor, acquisition finance helps you complete the deal without using all your own capital.

Business acquisition loans are typically secured against the business being purchased, your existing business assets, or other forms of collateral. The funding is structured to suit your strategy, cash flow, and long-term goals.

Common uses for business acquisition finance include:

  • Buying a profitable business or franchise

  • Management buy-outs (MBOs) or buy-ins (MBIs)

  • Partner or shareholder buyouts

  • Strategic mergers and acquisitions

  • Purchasing distressed or undervalued businesses

  • Expanding your existing business through acquisition

Types of Business Acquisition Finance

At The Funding Group, we offer a range of funding options to support business acquisitions of all sizes and across all sectors:

Senior Debt

Traditional secured lending, typically used when the business has strong assets or consistent cash flow. Suitable for stable, well-performing companies.

Cash Flow Lending

Unsecured acquisition loans based on the profitability (EBITDA) of the target business. Often used by experienced acquirers.

Vendor/Deferred Consideration

Part of the purchase price is paid in instalments over time, often backed by a seller’s loan. Helps reduce initial capital requirements.

Mezzanine Finance

A mix of debt and equity, ideal for bridging funding gaps in complex or high-growth acquisitions.

Equity Investment

Private investors or funds provide capital in exchange for shares in the business. Suitable for scale-ups and equity-backed deals.

Bridging Acquisition Loans

Short-term finance to complete time-sensitive acquisitions while long-term funding is arranged. Often used for competitive or distressed sales.

Typical Terms & Key Features

  • Loan Amounts: £100,000 to £20 million+

  • Loan-to-Value (LTV): Up to 90% of the purchase price (deal-dependent)

  • Term Length: 1 to 7 years (bridging loans from 3 to 24 months)

  • Interest Options: Fixed, variable, rolled-up or retained

  • Security: Business assets, commercial or residential property, personal guarantees

  • Approval Time: Indicative terms within 2–5 days; completion in 4–8 weeks

We work with a wide network of UK lenders, including banks, private investors, and specialist acquisition finance providers to ensure the best structure for your deal.

Who Can Use Business Acquisition Finance?

Business acquisition loans are available to a wide range of buyers, including:

  • First-time business buyers

  • Entrepreneurs and sole traders

  • Established business owners looking to grow

  • Management teams pursuing MBOs or MBIs

  • Private equity investors and SPVs

  • Companies with complex structures or limited trading history

  • Buyers with imperfect credit (subject to strong business fundamentals)

Whether you’re acquiring a limited company, franchise, or trading business, we can tailor the funding to your needs.

Benefits of Business Acquisition Finance

  • Access capital quickly to complete acquisitions without tying up personal funds

  • Enable growth through expansion, consolidation, or diversification

  • Flexible terms tailored to your deal size, sector, and repayment strategy

  • Broad lender access increases your chances of approval and reduces costs

  • Speed and certainty for time-sensitive transactions

  • No early repayment charges with many lenders

  • Expert deal support from initial structuring to funding completion

Our team has extensive experience in structuring acquisition finance that works for both borrowers and lenders, with a focus on clarity, speed, and long-term success.

Apply for Business Acquisition Finance Today

If you're planning to buy a business, acquire a competitor, or complete a shareholder buyout, The Funding Group can help you find the right funding solution.

Contact us for a free consultation and no-obligation funding quote.