Business Loans · UK limited companies

Business Acquisition Finance

Business acquisition finance supports the purchase of a trading business or selected business assets, using a structure matched to the transaction and repayment capacity.

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NBS Finance is a broker and introducer, not a lender. An enquiry does not guarantee an offer.

Build the funding case around the transaction

The purchase structure, buyer contribution and post-completion cash flow affect which funding components may be reviewed.

Share purchase, asset purchase and ownership changes

A share purchase and an asset purchase transfer different interests and liabilities. Explain the entities involved, what is being acquired and how existing facilities or security will be treated. MBOs, MBIs, partner buy-ins, buy-outs and shareholder changes also require a clear borrower and repayment structure.

Contribution, consideration and trading evidence

Prepare buyer contribution, source of equity, purchase terms and any deferred consideration. Providers assess existing business performance, target financials, valuation and the combined cash-flow plan. Include transaction costs and post-completion working capital rather than treating purchase price as the whole requirement.

Potential combinations

Debt, ABL, invoice finance and asset or commercial property-backed funding may be considered where relevant. Ownership, security priority, affordability and provider consent affect feasibility. Deferred consideration is a transaction term to assess, not guaranteed funding. Legal and tax advisers should review the transaction documents.

Asset-based lending

Review several eligible asset pools when invoices alone do not explain the whole requirement.

Reconcile sources and uses before the purchase

Hypothetical transaction, not funding terms: a £500,000 purchase, £25,000 transaction costs and £75,000 opening working-capital requirement create £600,000 of uses. If the buyer contributes £150,000, a £450,000 gap remains. That gap is not an approved loan: any senior debt, asset/invoice component, deferred consideration or other source must be individually accepted and legally coordinated.

Separate share and asset purchases, existing target debt and settlement, adviser costs, tax, stock adjustments and the cash retained after completion. Stress-test post-completion cash flow and repayments without double-counting assets, invoices or cash already included in the purchase mechanism.

Use larger acquisition guidance, management buyouts and the preparation guide. Buyer legal, tax and financial due diligence remains essential.

Common uses

When this may be worth discussing

01

Buying shares or business assets

02

Funding consideration alongside buyer equity

03

Combining acquisition and post-completion working capital

Prepare the enquiry

Information that helps produce a useful answer

Providers set their own rates, charges, fees, security and terms. Clear evidence helps distinguish a viable route from an unsuitable application.

  • Heads of terms and purchase price allocation
  • Historical accounts and current management information
  • Buyer experience, equity contribution and forecasts
Important: Due diligence, tax and legal advice remain the buyer's responsibility. Funding terms depend on the transaction and provider assessment.

NBS Finance is a broker and introducer, not a lender. NBS does not charge the client a separate broker fee. Providers set costs and terms and may carry out business or director credit checks; ask which searches will be made before a full application. An enquiry does not guarantee an offer.

Acquisition questions

Is the purchase price the full funding requirement?

No. Include transaction costs, settlements, tax, stock adjustments and realistic opening cash, then identify each committed source.

Does the buyer need to contribute cash?

The provider decides acceptable contribution, security and leverage. There is no universal percentage or full-price funding promise.

Can target assets automatically finance the purchase?

No. Ownership, valuation, existing security, legal structure and provider consent must be reviewed. Avoid counting the same value twice.

What if completion or trading is delayed?

Check offer conditions, expiry, costs already committed and whether the target can meet new repayments with lower cash generation.

Further reading and scope

This page is general commercial-finance information, not legal, tax or accounting advice. Read the relevant official guidance at www.british-business-bank.co.uk.

NBS Finance primarily supports UK limited companies. NBS Finance is not incorporated as a limited company and is not authorised or regulated by the Financial Conduct Authority. Where applicable, NBS works with lenders and intermediaries that are FCA-authorised for their own regulated activities; their status does not make NBS Finance FCA-authorised.

Tell us the outcome your business needs

Start with the amount, purpose and timing. Best estimates are fine.

Start your funding enquiry

Explore larger acquisition finance for business purchases from £500,000.