There are many ways to business success, whether creating a startup or natural expansion, but the most profitable and sensible way can be through a merger or acquisition of another business.
Deals and financing may be complex for a company that is looking to expand through purchasing another business, but we can help provide a bespoke funding package to cover every aspect of the deal and help two become one quicker and easier than through traditional financial routes.
The bespoke financial package can be made up of various portions of different ratios including a mix of secured bank loan, unsecured loans, utilising any local or national government funding available and deferred considerations based on certain conditions.
Acquiring another company is an opportunity to increase your market share, access a new audience, acquire top talent and eliminate the competition.
If you’re ready to expand your footprint, you need financing to fuel your upcoming deal. At Hilton Smythe, we know the ins and outs of the financial aspect of these types of deals.
With our team, you can obtain the finances you need to supercharge your growth and begin the next chapter of your brand’s story.
What is acquisition finance?
Acquisition financing is the process of gathering the capital needed to purchase another business. In an ideal world, this money would already be sitting in your company’s bank account, but the reality is rarely this straightforward.
The majority of acquisitions require external financing to fund and the right strategy to spread the total cost. An acquisition must make sense in the long term, and we help you to identify the financing plan that works for both sides.
With so many acquisition financing options available, hiring one of our consultants can unlock new financing options, provide tailored advice on the financial side and ensure that any proposed deal matches your business goals.
What type of financing is used for acquisitions?
Any form of financing can be used to complete your business’s acquisition. Every business’s story is different, which is why our consultants can point you in the right direction.
Some of the financing options UK companies can use include:
- Corporate cash reserves
- Traditional bank loans
- Line of credit
- Private lender loans
- Raising new investment
Capital must always be raised in a way that lessens the impact on your existing business and gives you everything you need to get your post-merger operations off to the best start. Our consultants account for these needs to position you for future success.
On the other hand, no two companies are the same. Every business requires a plan tailored to them. Join the Hilton Smythe community by hiring one of our consultants to learn more about the best way forward for your upcoming acquisition.
What do acquisition finance consultants do?
Embarking upon a merger is daunting, with countless pitfalls that can stop an otherwise glowing deal in its tracks. Our acquisition finance consultants work directly with company directors and investors to leverage different financial options.
Our experience working with companies in all of the UK’s major economic sectors allows us to take a big-picture view, accounting for several aspects, including:
Business Strategy – Any merger must make sense for your finances. We take the long-term view when analysing potential mergers and associated financing options.
Tax – Your tax strategy is closely entwined with any merger. We do our best to support your merger to lower your tax expenditure to leave more pounds in your pocket.
Structuring – Existing debt, corporate entity and board setups can impact the structure and financing outlook of any merged business entity. Our consultants can unpick these complex structures to help your deal go through.
Working with an acquisitions financing consultant is your source of truth as you deal with the pounds and pennies. With your consultant, you are poised to increase the chances of your merger going through, gain the financing you need and position your business for success.
How we support businesses in securing acquisition finance
Our years of experience in acquisition financing have enabled us to forge valuable relationships within the UK business community. Our contacts have helped hundreds of entrepreneurs bridge the capital gap blocking them from achieving their growth plans.
We can advise on every aspect of the acquisition financing process and unlock opportunities otherwise unavailable if proceeding alone. Some of our functions include:
- Providing a reliable, objective valuation for your business.
- Identifying suitable funding options based on a complete review of your business.
- Analysis and advice on UK government incentives to help you reach your goals.
- Guidance when applying for both secured and unsecured loans.
- Advice on deal structure.
- Assistance with negotiations.
- Strategies for spreading your total acquisition cost.
Acquisition funding is a must for any ambitious firm. By hiring a Hilton Smythe consultant, you gain the edge of affordable financing, bespoke acquisition planning and the assurance that your acquisition fully complies with UK corporate rules and regulations.
Trading businesses can use Commercial Mortgages to purchase or refinance commercial property from where their business operates. We can help you find the right commercial property finance option to assist you.
Commercial Property Finance
We can help you find the right commercial property finance option to assist you with either purchasing or refinancing a property to let. Whether it’s to house your own business or used as an asset that you can let out to generate additional income.
It’s important to find the most appropriate commercial loan to protect your business, or to support your ambitious business plans. The right amount of money, at the right time, on the right terms, can make or break a business many times over.
Property Development Finance
Property development finance is a range of loan solutions to enable property developers, investors and builders the funds to develop or refurbish houses, apartments, retail or commercial units, we can help you access the right finance.
Management Buyout Financing
When it’s time to sell your business there are many options available, Management Buyout financing allows experienced people working in a company to buy out the existing management.
Businesses can raise money through invoice financing or factoring, obtaining cash from unpaid invoices quickly. This method of financing is generally quicker and less stringent than traditional banking or other commercial finance solutions.
In business cash is king and if you’re looking to get the cash flowing, invoice factoring can be a way to release cash from the account receivable from your balance sheet.
Alternative Finance refers to any form of business finance that comes from a non-traditional provider. It aims to offer funding away from mainstream financing, such as from high street banks and capital markets.
Asset Finance is a great financing option for businesses who require new assets, such as equipment, transport and machinery. It allows businesses to spread the cost of the asset over an agreed length of time.