Fundur – Serving motivated UK businesses ready for growth

Acquisition Funding

With access to the best rates courtesy of over 300 lenders, we pair your business with the best-suited finance option.

Acquisition Funding2023-09-18T10:12:14+01:00
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Acquisition Funding: Mergers, Acquisitions & Expansion

Acquisition funding is a financial solution that enables businesses to pursue mergers, acquisitions, or expansions by providing the necessary capital. This funding option is particularly advantageous for companies seeking to grow through strategic acquisitions but may lack the immediate funds required for such endeavors.

Instead of relying solely on internal resources, acquisition funding empowers businesses to secure the necessary capital and spread out the financial commitment over a specified period.

Our process is quick & simple

How does business finance work?

1. Submit your business finance enquiry in 60s.

1. Submit your business
finance enquiry in 60s.

Using our very easy-to-use business finance application form, you simply complete the required information.

Using our very easy-to-use business finance application form, you simply complete the required information.

2. A chat about your business and goals.

2. A chat about your business and goals.

A Fundur Finance Expert will give you a call to discuss your application to assist you with your application.

A Fundur Finance Expert will give you a call to discuss your application to assist you with your application.

3. Our Finance experts Work Our Magic.

3. Our Finance experts Work Our Magic.

We then work with our board of partners and lenders to get your the possible rate available.

We then work with our board of partners and lenders to get your the possible rate available.

4. Your no-fuss finance is funded.

4. Your no-fuss finance is funded.

Once you’ve approved the rate you’re happy with, your funding is released to your bank account. Time to scale.

Once you’ve approved the rate you’re happy with, your funding is released to your bank account. Time to scale.

FAQs

What happens to debt in an acquisition?2023-08-29T15:46:05+01:00

When a company acquires another, it may choose to take on the target company’s debt, subtract it from the sale price, or pay it off prior to finalising the deal. The purchaser may also discuss with the lender to decrease the target company’s debt and lessen the overall cost of acquisition.

How to establish the value of the target in business acquisitions?2023-08-29T15:44:42+01:00

Building vs. buying: Determining the value of a business can be done by comparing the cost of starting a similar business to the cost of acquisition. Starting costs may involve expenses for research and technology, sales and marketing, borrowing and finance, fixed assets, and variable costs such as employee wages.

Net asset value: The term used to calculate a company’s potential sale value is EBITDA, which is the company’s earnings before interest, tax, depreciation, and amortization, minus liabilities or financial obligations.

P/E ratio: The buyer firm’s price-earnings (P/E) ratio should be higher than that of the target firm in mergers and acquisitions to boost the acquiring company’s earnings per share (EPS).

The P/E ratio is obtained by dividing a company’s share price by its earnings per share (EPS). For instance, if a company’s share price is £20 and its earnings per share are £2, the P/E ratio is 10.

Net present value: To determine a good sale price, estimate the target company’s future cash flow, apply discount factors, and calculate the net present value.

How does acquisition financing work?2023-08-29T15:36:17+01:00

As a business owner, it’s essential to secure the appropriate financing to facilitate a smooth transition after closing an acquisition deal. Fortunately, there are several acquisition financing options available, including seller financing, private investors, and conventional bank loans. With a down payment of only 15-20%, businesses can expand through strategic acquisitions while paying off the remaining balance over time.

What is business acquisition financing?2023-08-29T15:34:39+01:00
Acquisition financing refers to the act of obtaining capital to finance a merger or acquisition. This involves a variety of financing options that a business can use to purchase either all or a portion of another company’s shares or assets.
Understanding Acquisition Funding

Capitalise On Market Oppurtunities

Acquisition funding can encompass various approaches, including equity financing, debt financing, and partnership arrangements. By harnessing acquisition funding, businesses can strategically propel their growth trajectory while effectively managing financial resources.

This funding approach provides the means for companies to capitalize on market opportunities, consolidate their position within the industry, and extend their reach into new markets. Rather than being constrained by limited funds, acquisition funding offers the flexibility to seize promising prospects and drive sustainable expansion.

The Benefits

How Acquisition Funding Help You

Access to Capital

Acquisition funding provides the necessary capital to facilitate mergers, acquisitions, or expansions that may otherwise be financially out of reach for the business.

Strategic Growth

Businesses can strategically expand their operations, enter new markets, or enhance their competitive position by acquiring complementary companies or assets.

Increased Market Share

Acquiring competitors or complementary businesses allows for rapid market share expansion, enabling the company to gain a larger presence in its industry.

Diversification

Acquisition funding allows businesses to diversify their offerings, customer base, or geographic reach, reducing dependency on a single product or market.

Talent Acquisition

Acquiring companies may come with a pool of talented employees, specialized skills, and expertise that can benefit the acquiring company.

Accelerated Innovation

Integration of innovative technologies or products from the acquired company can accelerate the pace of innovation within the acquiring business.

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