Acquisition / MBO Finance
Acquisition & MBO Finance
Funding the next stage of your business journey
Buying an existing business or completing a Management Buyout can be a significant step — and getting the funding structure right is an important part of the process.
Whether you are an existing business owner looking to acquire another company, a management team seeking to buy the business you work for, or an entrepreneur looking to acquire an established business, BAT Financial Solutions can help you explore the commercial finance options available.
We start by understanding the transaction, the business being acquired and the people behind it before considering potential funding solutions.
Existing Management → Acquisition → New Ownership → Growth
The right funding structure can be just as important as the purchase price.
Acquisition finance
An acquisition can provide an opportunity to enter a new market, expand an existing business, acquire new customers or increase capacity.
Funding may potentially be used to support:
- The purchase of an established business
- A Management Buy-In (MBI)
- The acquisition of another trading company
- A strategic acquisition by an existing business
- The purchase of shares or business assets
- Additional working capital following an acquisition
The funding structure will depend on factors including the purchase price, the financial performance of the business being acquired, the experience of the management team, available security and the projected ability of the combined business to service the borrowing.
Management Buyouts
A Management Buyout can allow an existing management team to take ownership of the business they know and operate.
However, an MBO can involve more than simply raising the purchase price. The funding structure may also need to consider working capital, existing borrowing, the transition of ownership and the future plans for the business.
BAT can help you work through the funding requirement and consider potential commercial finance solutions for the transaction.
Our approach
An acquisition or MBO needs to be considered as a complete transaction rather than simply a loan application.
We will look at:
The transaction
What is being purchased, the agreed price and the proposed structure.
The business
Trading performance, profitability, cash flow and future prospects.
The management team
Experience, track record and their role in the future business.
The funding requirement
How much is required, what the funds are being used for and whether additional working capital is needed.
The repayment strategy
How the proposed borrowing is expected to be serviced by the business.
The wider structure
Existing borrowing, available security and other factors that may influence the funding options.
Deal First. Lender Second.
Our role is not simply to find someone willing to lend.
We help you understand the funding requirement, structure the proposition and then consider which commercial finance providers may be appropriate.
With over 35 years of banking and lending experience, BAT Financial Solutions brings a lender’s perspective to the initial conversation.
If you are considering an acquisition, MBI or MBO, speaking to us early in the process can help you understand the potential funding routes before you commit to the transaction.