Financing a strategic business acquisition

1. 01

   The Situation

   An established, profitable business identified an opportunity to acquire a competitor and expand into a new location.

2. 02

   The Challenge

   Although the existing business was performing well, the proposed acquisition required additional capital beyond its established banking facilities. The transaction involved several interconnected requirements, including acquisition funding, commercial property considerations and ongoing working capital.

3. 03

   Beacon's Approach

   Beacon assessed the acquisition alongside the existing business's financial performance, debt commitments and projected cash flows. Rather than treating each funding requirement as a separate transaction, Beacon explored an integrated financing strategy incorporating acquisition finance, commercial property finance and working capital. Particular consideration was given to the cash flows of both businesses and the security arrangements required to support the transaction.

4. 04

   The Outcome

   The acquisition was completed with a funding structure that considered existing and projected cash flows while reducing the need for personal guarantees. The approach supported the client's expansion into a new location while accounting for the financial requirements of the combined business.

Scenarios are anonymised and provided for illustrative purposes. Individual lending outcomes depend on circumstances and lender assessment.