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Business Acquisition Finance

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.

Common scenarios

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.

Lender assessment

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.

Government-backed lending

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

Available for acquisition finance in some circumstances
Government partial guarantee enables larger lending
Available through accredited lenders only — not all banks or brokers
Buyer still personally guarantees (up to 20% of loan value)
Maximum facility size varies; check current scheme parameters with us

Scheme parameters subject to change. Contact Sorbus Finance for current eligibility criteria.

Who you could speak to

Graham Nash, Commercial Finance Director at Sorbus Finance

Graham Nash

Commercial Finance Director

Business loans, cash flow and wider commercial funding

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Arran Turner, Managing Director at Sorbus Finance

Arran Turner

Managing Director

General commercial finance and how Sorbus works

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  1. 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.

  2. 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.

  3. STEP 3

    Lender assessment

    The lender, not Sorbus, underwrites and makes the credit decision. Approval is never guaranteed.

  4. 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 studies
Enquire about Business Acquisition Funding

Start 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.

A preference, not an appointment. We pass it on where we can. We aim to respond within one business day, Monday to Friday, 9am to 5:30pm. This is an aim, not a guaranteed callback time.

We will use your details to respond to your enquiry. We may share information with our principal, lenders and service providers where necessary, or where required by law, as explained in our Privacy Policy. Marketing emails are optional and depend on your separate choice.

Prefer to call?

Speak directly to an adviser Monday–Friday, 9am–5:30pm.

01246 383500

Free call. No obligation.

Unique to Sorbus Finance

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 Check

Free · No credit check · Not required before you talk

Want the full picture? The full fact-find is longer and also optional.

Google Reviews

What our clients say

4.9/5— Verified Google Reviews
Google Review

"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."

Jules Mortimer
JM Conveyancing
Google Review

"Very efficient and found us the product we required. Communication was excellent and couldn't have asked for better."

Luke Flanagan
Business Finance
Google Review

"Great service from Aiden, and his team including Arran. Would highly recommend."

Stu Roosters
Asset Finance

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.

01246 383500