Finance For Business Acquisition

Access to finance is one of the most important issues when considering a business acquisition.  The finance terms and amount will influence your maximum buy price.

It is not just the purchase price that needs to be considered but also the ongoing funding of working capital, redundancies, equipment upgrades and business restructures.

Bespoke Finance assists you to ‘get ready’ for business acquisitions by reviewing your current finance facilities and assessing the capacity for extra finance.

Once a business target has been identified then Bespoke Finance assesses the finance requirements, the cashflow forecasts and the appropriate finance structure.  Bespoke Finance will prepare the detailed finance submission and lead the finance negotiations in conjunction with you, your Financial Controller or external adviser.

If you are thinking of selling your business then you should assess the finance options available to potential purchases.  Bespoke Finance helps you consider the financing options of a management buyout or funding a succession plan to a younger family member.  We also can assist if a purchaser is having trouble in securing appropriate finance.

Some of the finance options available for business acquisitions are:

• Term Debt
• Commercial Bills
• Invoice Financing

Term Debt

This is traditional finance for a set term with regular repayments.  There can be flexibility with repayment options to be aligned to business cashflows or have balloon payments at the end of the term.

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Commercial Bills

This can give you flexibility to easily access funds when required up to your limit.  You can chose to pay interest only or make principal repayments and can chose the timing of interest payments and bill maturity.

This finance facility can be good when you don’t need to commit to a 10 or 15 year facility.  The cashflow from the business acquisition may be sufficient to rapidly pay down the commercial bill and thereby freeing up capacity for further acquisitions.

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Invoice Financing

There are ways of leveraging against your debtors ledger, or even the target business’ debtor ledger, to assist with funding a business acquisition.

This type of funding can also assist with a management buyout or business succession.

Contact Bespoke Finance today to review finance options for your business acquisition.

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