"Lewis was quick, efficient and super helpful and what we needed was organised in just a few days. We could not ask for more. Highly recommend 5 stars from JM Conveyancing."
Funding to buy the business you want, structured properly
Buying an existing business, acquiring a competitor, or funding a management buyout requires a different approach to finance than a standard working capital loan. Sorbus Finance compares acquisition finance structures across its lender panel — matching the deal size, timeline, and structure to the right funder for the specific transaction.
Acquisition finance is not a working capital loan. The deal size, the complexity of the assessment, and the time required are all significantly different. This page is specifically for businesses looking to fund a commercial acquisition — not for general expansion borrowing.
Acquisition types we fund
Buying an existing business outright
A business owner is retiring or exiting. You're buying the trading history, customer base, and assets — not starting from scratch. The target's own profitability and balance sheet are central to the lender's assessment.
Acquiring a competitor or complementary business
A strategic acquisition to consolidate a market position, buy a customer book, or add a capability. Lenders assess both the buyer's strength and the combined business's ability to service the debt after completion.
Management buyout (MBO)
The management team buys the business from its owners. The management team's sector knowledge and the business's existing trading record typically make this a structured, lender-familiar deal — though the team's own contribution is expected.
Buying into a franchise
A franchise acquisition has its own lending nuances — the established brand track record can work in the applicant's favour, and some lenders have established relationships with specific franchise networks. See also our dedicated Franchise Finance page.
How lenders assess an acquisition — differently from a standard loan
The target business's trading history
Lenders want to see consistent, demonstrable profitability in the business being acquired — not just the buyer's creditworthiness. Typically the last 2–3 years of filed accounts for the target are required.
The deal valuation
An independent valuation or accountant's report on the purchase price is standard. Lenders need to be satisfied that the acquisition price is reasonable relative to the business's earnings and assets.
The buyer's own contribution
A buyer contributing 20–40% of the deal value from their own funds or equity demonstrates commitment and reduces the lender's risk. The higher the personal contribution, the more lenders will typically advance.
Post-acquisition debt serviceability
Lenders model the combined business's ability to service the acquisition debt after completion — not just at the current moment. A deal that stacks up pre-completion but creates unsustainable debt levels post-completion will be declined.
The buyer's sector experience
Buying a business in a sector you know well is treated more favourably than crossing into an unfamiliar market. Evidence of relevant experience — previous employment, prior business ownership, management roles — strengthens the case.
Security available
For larger deals, lenders may require security beyond a personal guarantee — property, existing business assets, or the assets of the business being acquired. The right structure depends on the deal size and available security.
Larger acquisitions and the Growth Guarantee Scheme
For acquisition deals above £250,000, government-backed lending schemes can play an important role in making the deal workable. The Growth Guarantee Scheme (GGS) — the successor to the Recovery Loan Scheme — allows lenders to offer finance with a government partial guarantee, which can enable larger borrowing than would be available through purely commercial means.
Not all lenders on our panel are accredited GGS providers, and not all acquisition deals will qualify — but where the deal size and structure fit the scheme criteria, it can be a meaningful tool. We will advise whether GGS is relevant to your specific acquisition and which lenders on our panel can offer it.
Growth Guarantee Scheme — key facts
Scheme parameters subject to change. Contact Sorbus Finance for current eligibility criteria.
Who you could speak to
- STEP 1
A conversation with a broker
You talk to a real Sorbus broker about the business, the purpose and what is affordable. No application at this stage.
- STEP 2
Credit placement
If you choose to go further, we prepare the case and decide which lenders on our panel of 150+ are worth approaching.
- STEP 3
Lender assessment
The lender, not Sorbus, underwrites and makes the credit decision. Approval is never guaranteed.
- STEP 4
Documentation
If a lender offers terms and you accept, we help coordinate agreements and payout paperwork with you.
Every step after the first is optional. You can stop after the conversation. Sorbus is a broker, not a lender.
Client journey
Explore real client journeys
Read how real businesses approached a funding goal, what Sorbus arranged and what happened next.
Browse anonymised case studiesStart with a conversation
Tell us a little about what you need and who you would like to speak to. No obligation, no credit check at this stage. We aim to respond within one business day, Monday to Friday, 9am to 5:30pm.
Prefer to call?
Speak directly to an adviser Monday–Friday, 9am–5:30pm.
01246 383500Free call. No obligation.
Optional: Business Finance Health Check
Our Finance Health Check gives a snapshot of your business's current lending position — useful context ahead of any acquisition finance conversation.
Take the short Health CheckFree · No credit check · Not required before you talk
Want the full picture? The full fact-find is longer and also optional.
Email us anytime
hello@sorbusfinance.co.ukWhat our clients say
"Very efficient and found us the product we required. Communication was excellent and couldn't have asked for better."
"Great service from Aiden, and his team including Arran. Would highly recommend."
Business acquisition finance — your questions answered
Common questions from buyers and management teams planning an acquisition.
Ready to discuss your acquisition?
Lewis or Arran will take the time to understand the deal before recommending the right structure and lenders.

