Mergers & Acquisitions
Are you looking at growing your business through acquisition or perhaps there is potential for a buy-out or buy-in? There are several different ways of raising funding for these transactions and we can help structure in the most appropriate and cost-effective way
Types of lending products available
Cash Flow Loan
These are loans offered to help facilitate the transaction structured against the financial performance of the business to leverage capital against current & future cash flow. The amount that can be borrowed is calculated against the EBITDA of the business and also the Net Worth held in the Balance Sheet.
Directors Personal Guarantees are often required and the term of this type of loan tends to be short term.
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Secured Loan/
Asset-based Loan
Utilising the company’s assets can be a good way of raising capital for an acquisition, buy-out or buy-in depending on the structure of ownership of the assets and any existing borrowing secured against them. Borrowing can be structured over a longer term than unsecured/cash flow lending and this helps to keep the monthly costs down. Secured lending also tends to be more cost effective with interest rates reflecting the secured position of the lender.
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Invoice discounting
Confidential invoice discounting are facilities that are arranged confidentially to ensure that customers and suppliers are unaware that money is being advanced against invoices. The business remains responsible for credit control and collecting payments.
Money is usually advanced against the whole debtor book, with typically up to 90% of the value of outstanding invoices made available.
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Selective Invoice Discounting
Rather than entering into an agreement for your entire debtor book, selective invoice finance enables a business to sell individual invoices and obtain money advanced against that. Depending on how much money a business would like to raise, this can be a cheaper option than a full confidential invoice discounting facility.
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