Acquisition finance

Acquisition finance is securing the money to buy a company — usually a combination of equity, bank debt and a deferred portion of the purchase price. It determines what secures the loan and what obligations the buyer will owe the bank after closing.

Who it is for

You are buying a company and financing part of the price with debt
You are negotiating acquisition loan terms with a bank
You need the financing timetable aligned with the closing date
You are dealing with security over the target's assets

Key areas of work

Funding analysis and planning
Structuring financing solutions
Negotiating loan and facility terms
Loan security and pledges
Aligning financing with the transaction timetable
Financial modelling and analysis

How we handle it

The most common problem in acquisition finance is not the interest rate but timing and drawdown conditions. The bank wants to disburse only after conditions are met; the seller wants the money at signing. We bridge that gap through deal structure and escrow.

We prepare and review the facility documentation, security agreements and the representations you will be giving the bank. We flag the covenants that will constrain you for years after the deal closes.

Frequently asked questions

Can the target company secure the loan used to buy it?

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This is a sensitive area with restrictions that must be assessed for the specific structure and company type. That is precisely why security is addressed before the facility agreement is signed, not at drawdown.

What do conditions precedent to drawdown mean?

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They are the conditions you must satisfy before the bank releases the money — typically creating security, delivering documents or meeting financial tests. If they are not aligned with the closing date, the deal slips.

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