TrueValue M&A Network
Acquisition finance specialists
Acquisition finance specialists arrange the debt that funds a purchase: term loans against cash flow, asset-based lending against the target’s receivables, plant and property, and the mezzanine and vendor finance that fills the gap between what a lender will advance and the price.
Acquisition finance specialists
Verified and featured professionals are listed first. Refine by location, sector or deal size.
What acquisition finance specialists do
A debt adviser takes the deal to the market of lenders — high-street banks, challenger banks, asset-based lenders, private debt funds — and brings back terms. They know which lender will lend against which security, what leverage a sector supports, and what covenants and fees to expect, and they negotiate the facility letter alongside the lawyers.
On a leveraged acquisition the funding structure is the deal: it decides the price a buyer can pay, the cash the business must generate to service the debt, and the covenants that will bind the buyer for years.
When to engage them
Engage a debt adviser as soon as it is clear the acquisition will need third-party funding — before the offer, not after heads of terms. A seller takes an offer more seriously when the funding is lined up, and the terms available will shape the price you can offer.
Usually active at
- Evaluating a specific business
- Making or negotiating an offer
- In due diligence
- Legal documents and completion
What they typically help with
- Senior term debt and revolving facilities
- Asset-based lending: invoice finance, plant and property
- Mezzanine, unitranche and private debt
- Vendor loan notes and deferred consideration alongside bank debt
- Covenant negotiation and the facility documents
Questions to ask before you engage
- 1. Which lenders have you closed acquisition facilities with in the last twelve months?
- 2. How are you paid — by me, by the lender, or both — and is the fee charged on the amount drawn or committed?
- 3. What leverage and pricing would you expect for a business of this profile?
- 4. What covenants should I expect, and what headroom would you want built in?
- 5. Are you independent of the lenders you introduce?
How acquisition finance specialists are paid
Debt advisers are usually paid an arrangement fee on completion, calculated on the facilities raised, sometimes with a retainer or a work fee. Some receive a commission from the lender as well; ask, since it affects independence. The lender’s own arrangement fee, legal fees and any non-utilisation fee are separate costs in the deal.
How TrueValue fits alongside
TrueValue’s funding plan, part of the deal model, reads the target’s own balance sheet to cap asset-backed draws at the loan-to-value the assets support, tests DSCR, leverage, interest cover and fixed-charge cover year by year, and reports a senior loan above the usual cash-flow ceiling rather than silently allowing it. A buyer arrives at the debt adviser with a structure that already funds the price, or knowing exactly why it does not.
Frequently asked
How much debt can I raise to buy a business?
- It depends on the target’s cash flow, its assets, the sector and the lender. Cash-flow lenders think in multiples of EBITDA with a ceiling they rarely exceed for smaller businesses; asset-based lenders advance percentages of receivables, stock, plant and property. A debt adviser will give you a range for your specific target.
What is the difference between a debt adviser and a commercial lender?
- A lender provides the money. A debt adviser or broker finds the lender, runs the process and negotiates the terms, and is paid a fee for doing so. Some transactions go directly to a lender; larger or more structured ones usually benefit from an adviser.
Does the seller need to know how the deal is funded?
- They will want to know it is funded. Deferred consideration and vendor loans involve the seller directly; bank debt does not, though a seller’s advisers will look for evidence that facilities are agreed before exclusivity.
Listings in the TrueValue M&A Network are provided for information. A listing is not an endorsement or a recommendation, and TrueValue does not guarantee any professional’s performance. You must carry out your own due diligence before engaging anyone, verify regulated status independently with the relevant regulator, and seek qualified legal, financial and tax advice where appropriate.