If you’re purchasing a company as an individual or part of a management team, it’s unlikely that you’ll be able to meet all upfront costs on your own. Alternative finance options like asset finance, mezzanine finance and business loans can help.
A Leveraged Buyout/Buy-in occurs when most of the cost of buying an existing company is funded using business finance.
Leveraged Buyout and Buy-in are both types of funding that offer internal and external management teams support and are when a business seeks to fund a large proportion (normally more than 90%) of the purchase with debt.
Business finance can be obtained by traditional banks – although this is often harder to qualify for – or specialist/alternative finance lenders.
You can use a combination of finance types to fund your Leveraged Buyout/Buy-in. You can also apply for finance to fund your working capital requirements after the purchase. The following secured and unsecured business finance options are available:
Asset finance – you can use asset refinance to release cash from the company’s assets (e.g. property or stocks) and use it to fund part of your purchase.
Term loans – by opting for a standard term loan, you’ll be able to repay the funds you borrow, plus any interest, over a longer period of time (usually up to 5 years).
Mezzanine finance – if you need a quick cash injection to cover the remaining costs associated with buying the company, mezzanine finance can help.
Revolving credit facility – this flexible form of finance enables you to access funds on an “as-needed” basis, as long as you adhere to the repayment terms.
An experienced Corporate Finance Specialist will help you navigate your options
We’ll compare over 120 lenders to find the right funding for your buyout/buy-in
Your business finance quote won’t affect your credit score
Secured and unsecured flexible finance options available subject to eligibility
Representative example*
7.63% APR Representative based on a loan of £50,000 repayable over 24 months. Monthly repayment of £2,252.94. The total amount payable is £54,070.56
*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.
Annual Percentage Rate
Rates from 2.75% APR
Repayment period
1 month to 30 years terms