Acquisition Finance, MBO & MBI Funding
Fund your next business acquisition with the right finance structure.
Buying a business can be an exciting route to growth, succession or ownership, but funding the deal correctly is crucial.
Acquisition finance can help business owners, investors and management teams raise the capital needed to purchase another company, buy into a business, or support a management buy out or management buy in.
At Kerr & Watson, we help you understand your options, structure your funding requirements and approach lenders suited to your transaction.
Who We Help
✓ Buying another business to grow your company
✓ Existing management teams planning a management buy out
✓ External management teams considering a management buy in
✓ Business owners looking at succession or exit planning
✓ Directors, shareholders or investors needing acquisition funding
✓ Companies seeking specialist lenders for complex transactions
Looking to Buy Another Business?
Acquiring another business can help you expand into new markets, increase turnover, access new customers, bring in skilled staff or strengthen your position within your sector.
However, most acquisitions require careful funding. The lender will usually want to understand the business being purchased, your experience, the deal structure, the financial performance of the company and how the debt will be repaid.
At Kerr & Watson, we help assess your funding needs and identify lenders that understand business acquisition finance.
Planning a Management Buy Out?
A management buy out, often called an MBO, is where the existing management team buys part or all of the business they already help run.
This is often used when current owners want to retire, step back, release capital or pass the business on to the people already involved in its day-to-day success.
Management buy outs can be attractive because the incoming owners already understand the company, its customers, its staff and its future potential. However, lenders will still want to see a clear plan, strong financials and a sensible funding structure.
We can help you explore finance options for a management buy out, including debt funding, asset-backed lending, commercial finance and other specialist lending options.
Considering a Management Buy In?
A management buy in, or MBI, is where an external management team or buyer acquires part or all of a business they do not currently run.
This can be suitable where a business needs new leadership, specialist experience, fresh investment or a new growth strategy.
Because an MBI involves an external buyer, lenders may look closely at your track record, sector experience, business plan, due diligence and how you intend to manage the transition after completion.
At Kerr & Watson, we can help present your case to lenders clearly and identify funding routes suited to your plans.
Not Sure How Acquisition Finance Works?
Acquisition finance is usually arranged to help fund the purchase of a business, shares in a business, or the assets of a business.
The structure depends on the size of the deal, the financial strength of the company being purchased, the buyer’s contribution, available security and future cash flow.
Funding may include one or more of the following:
- Senior debt from a bank or specialist lender
- Asset-backed lending secured against property, machinery, invoices or other business assets
- Commercial loans or structured business finance
- Seller financing or deferred consideration
- Mezzanine finance where additional funding is needed
- Private equity or investor funding for larger transactions
Many deals use a combination of funding sources rather than relying on one lender or one product.
Concerned the Deal Is Too Complex?
Acquisition finance can involve several moving parts, including valuations, due diligence, legal work, tax advice, shareholder agreements and lender negotiations.
The lender will usually want to understand:
- The purchase price
- The reason for the acquisition
- The financial performance of the business
- How the loan will be repaid
- The buyer’s experience
- The ownership structure after completion
- Any security available
- The future growth plan
We help you understand what lenders are likely to ask for and how to structure your enquiry before approaching the market.
Need Funding for a Business Succession Plan?
Acquisition finance is often used when business owners want to step away from the company but keep the business trading under familiar leadership.
This could involve an existing management team buying the business, a family succession plan, a shareholder buyout, or a staged exit where the seller is paid over time.
A well-structured funding plan can help protect cash flow, support the outgoing owner and give the new owners the capital they need to move forward confidently.
Your Mortgage In 3 Easy Steps…
Conversation
Schedule a call to talk to a mortgage advisor about your goals, challenges and vision for your mortgage.
Alternatively give us a call on 01252 224620 or email us on info@kerrandwatson.co.uk.
Research
We will take the information gained on the call and carry out some research before sending you a bespoke recommendation.
If you would like an agreement in principle, we’ll also arrange this for you.
Application
We will submit the full application to the mortgage lender, sending them the documents and liaising with the underwriters until the mortgage has been fully offered on the new interest rate.
We will also communicate with you at every stage, from application to completion.
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