Funding to buy the business you want, structured properly

Acquisition finance ranges from under £100,000 for a small business purchase to several million pounds for larger deals. The amount a lender will provide depends on the size of the deal, the target business's trading history and profitability, the buyer's own financial position and sector experience, and whether any additional security is available. For larger deals, government-backed lending schemes can support amounts that exceed standard lender limits.

Lenders treat an acquisition deal very differently from a standard working capital loan. The target business's own trading history, profitability, and balance sheet matter as much as the buyer's creditworthiness — in some cases more so. Key documents include the last two to three years of the target's filed accounts, management accounts, a business valuation or independent review, details of any existing debt or liabilities, and information about the nature and stability of the target's revenue.

Yes — and in most cases lenders expect the buyer to contribute a meaningful proportion of the acquisition price from their own funds. A typical structure sees the buyer contributing 20–40% of the deal value with the remainder funded by debt. For management buyouts, the management team's contribution (whether cash, equity, or reinvested proceeds) is a standard part of the structure. We will help you think through the right capital structure before approaching lenders.

A management buyout (MBO) is where the existing management team buys the business from its owners — typically a retiring founder or a larger group divesting a subsidiary. It's one of the most common acquisition scenarios we deal with. The management team's sector knowledge and the business's existing trading record make it a lender-friendly deal structure in many cases, though the management team's own financial contribution and personal guarantees are usually required.

Acquisition finance is more complex than a standard business loan and typically takes longer — four to eight weeks from initial enquiry to funds released is realistic for most deals, though this depends on deal size, complexity, the quality of information available about the target, and lender processing times. We recommend engaging Sorbus Finance early in the process — before heads of terms are signed where possible — so the finance structure is in place when it's needed.