Funding for an acquisition, and the ones that follow
£1m to £25m for UK businesses and private equity sponsors acquiring a business
What acquisition finance is
Acquisition finance is debt used to pay for buying another business. At Ignite, that means term loans of £1m to £25m.
We lend to proven UK businesses with at least £1m of EBITDA, a strong management team and two years of profitable trading.
Who we fund
01
Private equity sponsors
Buyouts, bolt-ons and buy-and-build plans for the next acquisitions agreed alongside the first.
02
Owner-managed businesses
Founders looking to expand without diluting equity.
03
Management teams
Buying the business they run from its founder or shareholders.
04
Healthcare groups
Care, children's care and education, veterinary and clinical services groups consolidating their sector.
How we structure an acquisition facility
| Element | What it does |
|---|---|
| Term loan | Funds the purchase price, repaid over up to 5 years |
| Revolving credit facility | Working capital headroom for the enlarged business |
| Leverage | Up to 4x EBITDA |
| Structure and covenants | Flexible structures and covenants set at levels that reflect the business's plan |
What we need for a first view
A short description of both businesses and the deal, the last two to three years of accounts for each, current trading, and your timetable.
How long it takes
Indicative terms within days. Completion depends on due diligence and the legal work on both sides of the deal.
Questions
Questions about acquisition finance
How much can I borrow to buy a business?
Between £1m and £25m, at up to 4x EBITDA, depending on the cash flow of the combined business and the plan for it.
How long does acquisition finance take?
Indicative terms within days, and completion in as little as weeks dependent on due diligence and legals.
Do you fund buy-and-build strategies?
Yes. We work closely with sponsors and management teams to agree longer term strategies.
Do I need a corporate finance adviser?
Most of our deals come through advisers, and we work closely with them.
What don't you fund?
Start-ups, pre-profit businesses, property development, early-stage ventures, and businesses based outside the UK.
Buying a business?
Send us the headline numbers and your timetable. If it's one for us, we'll let you know quickly.