Secure M&A Finance to help your business to grow. Choose from the most affordable and Flexible M&A Finance packages from the top UK lenders.
When you are planning a merger or acquisition, choosing the best finance option for the situation can have a significant impact on the success of the deal. There are many different finance options available on the market, so finding a broker who can find you the optimal deal for your specific deal circumstances is crucial.
Brokers who have extensive experience in raising M&A finance can also provide businesses with valuable support and guidance to make sure the end-to-end deal consolidation process is as efficient and streamlined as possible.
The many processes involved in mergers and acquisitions include complex legal and regulatory requirements, so it is highly beneficial to work with a commercial finance broker who understands these processes and are experts in ensuring regulatory compliance.
What is Merger and Acquisition Finance?
M&A Finance (also known as Merger and Acquisition Finance) provides the capital to enable the purchase of the company and can also cover the other associated costs of completing a merger or acquisition, e.g. legal fees, new premises, stocks etc.
There are a number of different types of M&A, with the most common type of merger being where two companies combine or merge by one company buying the other company’s shares or assets.
Usually, this will involve a new company being formed with all assets, staff and liabilities transferring to the new company. This type of deal can help companies to quickly scale up their business or acquire assets from the other company, such as technology solutions or products.
In some cases, this type of deal is used when a distressed business is in danger of going into liquidation and a business with more stable finances buys the company.
An acquisition is a similar process but often, the acquired company will continue as a separate legal entity from the buyer’s other company or companies.
These are some of the different types of M&A strategies that can be actioned:
- Horizontal merger (where two companies are in direct competition)
- Vertical merger (a supplier buys a customer, or a customer buys a supplier)
- Reverse merger (where a private company acquires a public company)
- Congeneric merger (merging two companies that are not direct competitors but work in the same industry)
- Market-extension merger (where two companies sell the same products but to different markets)
- Product-extension merger (where two companies have related products but are not in direct competition)
- Conglomerate merger (where there are no related business areas between the companies)
We can help to secure finance for ALL of these types of M&A and find the best finance product for the circumstances, ensuring that the capital provided is sensitive to the company’s operating cash flows.
Why Use a Specialist M&A Broker?
Merger and Acquisition finance is a niche finance product and using a specialist M&A Finance Broker will enable businesses to find the best interest rates and the most suitable finance arrangement to support the completion of the merger or acquisition.
In recent years, certain financing options have become more difficult to secure, with increased regulatory requirements and lenders have had to apply stricter criteria to their lending policies. Using a M&A Finance Broker helps businesses to access the best available finance deals from across the whole lending market. This can include delas that are not available for companies through direct lenders.
Whether you have found your first business acquisition opportunity to grow your business, or you are an experienced investor acquiring new businesses, we can provide you with the expert advice and finance options required.
Types of M&A Financing: Equity Financing v Debt Financing
There are two main types of M&A Financing:
In this type of finance option, a company raises capital through the sale of shares. This could include acquiring funding from venture capitalists, initial public offerings or individual or angel investors. When you sell shares to investors, they must be consulted whenever decisions are made that will impact the whole company and profits must be shared.
Debt financing essentially means that the company is borrowing money from a lender. One of the benefits of this option is that the borrower is able to maintain full control over the company, as they do not have to give up a portion of ownership. The finance is paid back like a loan and once the loan is fully repaid, the ties to the lender finish. There is no profit sharing or other financial requirements other than the repayment of the interest.
M&A finance from a lender enables companies to scale up without the complications of sourcing and working with investors, and this solution is regarded by many companies as the most convenient type of finance option.
Why Choose Our Merger and Acquisition Finance Services?
As a long-established commercial broker with over a decade of experience in brokering finance products for SMEs and investors, we have a comprehensive understanding of the market and the variety of solutions that are available.
These are some of the top benefits of working with the Commercial Finance Network as your M&A Finance Broker:
1. We Work with ALL UK Lenders
We are directly Authorised & Regulated by the FCA as whole-of-market broker, we therefore work with all lenders and have no tie to any specific lender. We provide impartial advice and are fully independent, so we will always form our advice based on the options available and the most suitable solutions for your specific business and acquisition or merger deal plans.
We review the full finance market to identify the deals that offer the best finance solution to fund the M&A transaction. Our expert M&A finance analysts will work with your business to review the full financial position, to identify which type of finance package is most beneficial.
2. Excellent Customer Service
Commercial Finance Network is a commercial broker that has been working with UK businesses to finance mergers and acquisitions for many years. Our experience and expertise in this area enables us to provide the highest standard of customer service, working closely with directors and other key stakeholders within businesses to find the right finance product from the market.
3. Affordable Finance Packages
We use our in-depth market knowledge to find the lowest interest rates for our clients and providing affordable finance packages is very important to us. Completing an M&A requires excellent financial planning and financial management, which is why ensuring your business has the best deal is vital for a successful outcome. Our financial analysts will review your company’s finances, including cash-flow to identify the most affordable finance package for your merger or acquisition.
4. More Flexibility on Amounts of Capital
With strict lending criteria in place, some companies find it difficult to secure the amount of capital required to finance their merger or acquisition. Being a whole-of-market broker, Commercial Finance Network can help companies to get approved for higher amounts of capital, by identifying the lenders who can provide a higher amount to eligible companies who meet their lending criteria.
Conversely, some lenders will only provide a finance for a minimum amount of capital, which may not be suitable for smaller scale merger and acquisitions, as they do not want to take on larger amounts of debt. We can find the right lender and finance package to suit the exact requirements of your M&A purchase and cash-flow.
5. Expert Advice with Simple Processes
Applying for Merger & Acquisition Finance can involve time-consuming processes, which can be distracting when you are working on executing a merger or acquisition. By using the expertise and financial product knowledge of Commercial Finance Network, we can help to make the application process go through faster and we can complete a lot of the more complicated administrative work.
6. Secure Your Merger and Acquisition Finance – Fast Decisions
Timing is a crucial factor in completing mergers and acquisitions and any delays can cause a deal to fall through. With our fast and professional M&A finance services, we can provide you fast decisions in principle, often within 24 hours depending on the complexity of the deal, so that you are in a position to initiate your merger or acquisition as soon as possible.
Get in touch with us today to discuss your requirements directly with one of our M&A Finance experts.