Business Acquisition Finance
Independent Debt Advisory for UK Business Acquisitions
Acquiring a business is a complex and highly disciplined process. Buyers must also secure funding that is sustainable post-completion and capable of supporting the business long term.
Oakmead Finance provides specialist debt advisory services for UK business acquisitions, including management buy-outs (MBOs), management buy-ins (MBIs) and strategic acquisitions. We work closely with buyers and their professional advisers to structure and arrange acquisition finance that supports both completion and future growth.
Typical Transactions
We typically advise on acquisitions with the following characteristics:
Enterprise values ranging from £1 million to £25 million
EBITDA of £500,000 to £5 million
UK-based trading businesses across a broad range of sectors
Transactions including MBOs, MBIs and strategic acquisitions
Each transaction is assessed on its own merits, with funding structures tailored to the specific commercial and financial profile of the business.
A Structured, Advisory-Led Approach
Securing acquisition finance involves more than identifying a lender. It requires a detailed understanding of debt capacity, lender appetite, credit risk and the interaction between different funding products.
Our role is to advise on the optimal funding structure and manage the process from initial assessment through to completion. We engage the most appropriate lenders, coordinate credit approvals and oversee the transaction to ensure funding is delivered on agreed terms and within required timeframes.
We support clients by:
- Assessing debt capacity and funding options at an early stage
- Structuring lending that is appropriate, serviceable and resilient
- Coordinating multiple lenders and facilities where required
- Managing lender engagement, credit approval and documentation
Our focus throughout is on structuring funding that remains sustainable post-completion and resilient under lender covenants.
Our Role in the Acquisition Process
Our involvement in acquisition transactions typically includes:
Initial assessment of funding requirements and debt capacity
Structuring the funding solution in line with the transaction objectives
Engagement with appropriate lenders based on sector and risk profile
Coordination of credit approvals, due diligence and lender requirements
Support through documentation and completion
It gives clients clarity and control through the funding process.
For wider advisory context, see Funding Solutions. Acquisition programmes frequently combine Cashflow-Based Term Lending, Invoice Finance and Receivables Funding, and Asset-Based Lending (ABL) within a coordinated mandate. We also work alongside Professional Advisers throughout execution.
Acquisition Finance Structured to Deliver Certainty
Acquisition Funding Objectives
Many acquisitions require funding solutions that combine several lending products across different lenders. The objective is to secure sufficient capital while maintaining flexibility and protecting the business following completion.
Bespoke Lending Structure
We specialise in designing bespoke lending structures that reflect the specific characteristics of each transaction, including sector dynamics, cashflow profile, asset base and growth strategy.
Independent Market Access
As an independent adviser, we work across a broad panel of UK banks, challenger lenders and specialist funders. That gives us the freedom to recommend funding suited to each transaction, not what fits within a single lender's credit policy.
Funding Options Commonly Used in Acquisitions
Cashflow-based term lending
Senior term loans, secured or unsecured, with or without personal guarantees. Facilities typically range from £25,000 to £10 million, with leverage commonly between 2x and 4x adjusted EBITDA, subject to lender criteria.
Invoice finance and receivables funding
Revolving facilities secured against accounts receivable, often advancing up to 95% of invoice value. Commonly used to contribute towards acquisition funding and to support working capital following completion.
Asset-based lending (ABL)
Facilities structured against multiple balance-sheet assets, including receivables, inventory and plant. ABL is frequently utilised in larger or more complex transactions where maximising liquidity is a priority.
Speak to an Adviser
If you are considering a business acquisition and would like to discuss funding options in confidence, please contact Oakmead Finance to speak with an adviser.
Contact an Adviser