Acquisition Finance

Acquisition Finance | Business Purchase Funding Specialists

We help businesses structure and fund acquisitions, from bolt-on purchases to platform deals, sourcing the right combination of debt, mezzanine, and equity across our full lender panel.

Explore your funding options

Overview

What is acquisition finance?

Acquisition finance covers the funding of business purchases, whether a strategic acquirer is buying a bolt-on to an existing platform, a private equity backed business is pursuing a buy-and-build strategy, or a first-time acquirer is purchasing a business outright.

Funding structures vary considerably depending on the size and nature of the acquisition, the acquirer's existing financial position, and the profile of the target business. Senior acquisition debt, typically from a bank or alternative lender, forms the base. Additional layers of mezzanine finance or equity from a co-investor may be required to bridge the gap between available debt and the purchase price.

Pinnacle works with acquirers at the earliest stage of an acquisition process, advising on fundable deal structures and identifying lenders who are active and well-priced for the specific transaction.

2-4x

EBITDA typical senior debt available

50+

lenders across our acquisition panel

Free

initial consultation

How we help

Why use Pinnacle as your broker?

Lenders take very different approaches to acquisition finance. Banks tend to have strict criteria around leverage, sector, and management track record. Debt funds and alternative lenders may be more flexible but price differently. Knowing which lenders are currently active, what their appetite is, and how they will view a specific transaction is knowledge that only comes from constant market engagement.

Pinnacle brings that knowledge to every acquisition. We structure the finance, prepare the lending case, approach the most appropriate providers, and manage the process to completion. Where a transaction requires multiple layers of capital, we coordinate across lenders to ensure the structure works as a whole.

We work across a wide range of sectors and deal sizes, from acquisitions of a few hundred thousand pounds through to larger transactions requiring more sophisticated capital structures.

Whole-of-market sourcing

We work with banks, alternative lenders, debt funds, and equity providers active in UK acquisition finance.

Structure advice

We advise on fundable deal structures before you approach lenders, protecting your timetable and negotiating position.

Process management

Acquisition timetables are driven by the vendor. We ensure the finance process does not hold up completion.

All deal sizes

From sub-million-pound bolt-on acquisitions to larger platform deals requiring institutional capital.

Adviser coordination

We work alongside corporate finance advisers, solicitors, and accountants to integrate the finance process into the overall transaction.

Sector knowledge

Lender appetite varies significantly by sector. We identify those who are most active and best priced for your target business type.

Common questions

Frequently asked questions

How much can I borrow to fund an acquisition?

Acquisition debt is typically sized against the target business's EBITDA, with lenders generally advancing two to four times EBITDA for smaller transactions. The exact amount depends on the quality and predictability of earnings, the sector, and the lender's risk appetite. We will give you a realistic indication of available debt at your first conversation with us.

What information do lenders need to assess an acquisition loan?

Lenders will want to understand the target business in detail, including its financial history, customer concentration, sector dynamics, and management team. They will also want to understand the acquirer's track record and financial position. Pinnacle prepares a comprehensive lending case that presents this information in a format that matches lender expectations, reducing the time needed for due diligence.

Can I fund an acquisition if I am buying my first business?

Yes, though first-time acquirers face higher scrutiny than experienced ones. Lenders will focus closely on your relevant industry experience, the quality of the target business, and the support structures around you. We work with first-time acquirers and know which lenders are most receptive to funding well-structured first acquisitions.

What is the typical timeline for acquisition finance?

Senior debt for an acquisition typically takes six to ten weeks to arrange from initial application to funding, though this varies by lender and transaction complexity. We manage the process to ensure finance is not the critical path to your completion date.

Can you help structure a deferred consideration or vendor loan element?

Yes. Many acquisitions involve an element of deferred consideration or a vendor loan, where part of the purchase price is paid over time. We advise on how these elements interact with the senior debt structure and work with lenders who are comfortable with these arrangements.

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One conversation. The right funding.

We search the market, compare lenders, and secure the right deal on your behalf. No obligation, no cost to you.

Book your free consultation