Funding the acquisition, and the ones that follow
£1m to £25m for UK businesses and private equity sponsors acquiring a business
What acquisition finance is
Acquisition finance is debt used to pay for buying another business. At Ignite, that means term loans and committed acquisition facilities of £1m to £25m.
We lend to profitable UK businesses with at least £1m of EBITDA, a strong management team and two years of profitable trading.
Who we fund
01
Private equity sponsors
Buyouts, bolt-ons and buy-and-build plans, with a committed facility for the next acquisitions agreed alongside the first.
02
Owner-managed businesses
Founders
03
Management teams
Buying the business they run from its founder or shareholders.
04
Healthcare groups
Care, children's care and education, veterinary and clinical services groups consolidating their sector.
How we structure an acquisition facility
| Element | What it does |
|---|---|
| Term loan | Funds the purchase price, repaid over up to 5 years |
| Committed acquisition facility | Funding agreed up front for the next bolt-ons, so a buy-and-build plan doesn't stop for a new credit process |
| Revolving credit facility | Working capital headroom for the enlarged business |
| Leverage | Up to 4x EBITDA |
| Fees and covenants | Fees set out at the start; covenants set at levels that reflect the business's plan |
What we need for a first view
A short description of both businesses and the deal, the last two to three years of accounts for each, current trading, and your timetable. A teaser and the headline numbers are enough to start.
How long it takes
Indicative terms within [X] days of receiving the headline numbers. Completion typically takes [X to X] weeks, depending on due diligence and the legal work on both sides of the deal.
Questions
Questions about acquisition finance
How much can I borrow to buy a business?
Between £1m and £25m, at up to 4x EBITDA, depending on the cash flow of the combined business and the plan for it.
How long does acquisition finance take?
Indicative terms within [X] days, and completion typically in [X to X] weeks.
Do you fund buy-and-build strategies?
Yes. We can agree a committed acquisition facility alongside the first deal, so funding for the next bolt-ons is in place before you need it.
Do I need a corporate finance adviser?
Most of our deals come through advisers, and we work closely with them
What don't you fund?
Start-ups, pre-profit businesses, property development, early-stage ventures, and businesses based outside the UK.
Buying a business?
Send us the headline numbers and your timetable. If it's one for us, you'll have indicative terms within [X] days.