Business acquisition finance funds the purchase of an existing business or practice. It’s one of the more complex areas of commercial lending, because the value of a business often sits in its earnings and goodwill rather than tangible assets, and lenders assess the deal on the strength of the target, the price, your experience and the security available.
Acquisitions take different forms, an asset purchase, a share purchase, a practice buy-in or a franchise, and they can be funded through a mix of bank debt, vendor finance and your own equity. Financing goodwill is possible but sits with specific lenders and depends on the industry and the quality of the earnings. Getting the structure and the lender right is what makes the deal fundable.
At Loanworx, we arrange acquisition finance across industries and deal types. As an experienced finance broker, we assess the target with you, structure the funding, and match the deal to lenders who understand acquisitions, working alongside your accountant and solicitor through to completion.
Buying a business, practice or franchise? Call us on 1300 562 696 or get in touch and we’ll be back to you shortly.
Funding a business purchase comes down to what’s being bought, how it’s assessed, and how the deal is structured. Here’s the shape of it.
It can fund the tangible assets of a business, the goodwill, or both, depending on the deal and the lender. Goodwill financing is available with specific lenders, typically as a proportion of the purchase price or the recurring earnings, and is stronger in industries with reliable, transferable income.
Lenders look at the target business’s earnings, their reliability and transferability, the price you’re paying relative to those earnings, and your experience in running it. A profitable, stable target at a sensible price is far more fundable than a turnaround at a stretched multiple.
Acquisitions can be structured as an asset purchase or a share purchase, and funded through bank debt, vendor finance (where the seller defers part of the price), and your equity. The right structure depends on the deal, the tax position and the risk, which we work through with your advisers.
The hardest part of an acquisition isn’t usually finding the funding; it’s structuring the deal so a lender will back it. The price, the mix of assets and goodwill, the vendor’s involvement and your own experience all feed into whether, and how, it can be financed.
We assess the target alongside you, work out a fundable structure across bank debt, vendor support and equity, and match the deal to lenders who genuinely understand acquisitions in your industry. Working with your accountant and solicitor, we present it so the lender can say yes.
An acquisition often connects to other commercial needs, from premises to working capital. Explore our other commercial services below to find the right fit.
SMSF Loans
Borrow inside your self-managed super fund to acquire commercial property under a limited recourse borrowing arrangement.
Vehicle and fleet finance through chattel mortgage, lease or hire purchase, structured for your cash flow and tax position.
Short-term finance to bridge the gap between buying and selling, or to cover a timing shortfall.
Finance to acquire or refinance commercial investment property across office, retail, industrial and specialised assets.
Funding for residential and commercial development, from small builds through to multi-stage projects.
Review and refinance existing commercial debt to sharpen the rate, release equity or restructure the facility.
Overdrafts, lines of credit and cash-flow facilities sized to your real working capital cycle.
An acquisition is assessed on the target, the deal and the buyer. These are the factors that weigh most heavily.
The reliability and transferability of the business’s earnings are central. Recurring, well-documented income that will continue under new ownership supports a stronger deal than lumpy or owner-dependent earnings.
We help present the target’s earnings in the way a lender needs to see them.
Where much of the value is goodwill rather than tangible assets, financing is possible but sits with specific lenders and depends on the industry. Tangible security strengthens the deal and widens the lender panel.
We match the goodwill and security profile to lenders comfortable with it.
Lenders want to see that you can run the business you’re buying. Relevant industry or management experience materially strengthens the application, particularly where goodwill is being financed.
We present your background to support the deal.
Your equity contribution and any vendor finance, where the seller defers part of the price, both affect how fundable the deal is. Vendor support also signals the seller’s confidence in the business.
We structure the deposit and vendor terms to strengthen the application.
Whether the deal is an asset or share purchase, and whether the price is sensible relative to earnings, shapes both the funding and the risk. A stretched multiple is harder to fund than a fair one. We work the structure and present the deal to lenders who understand acquisitions in your industry, alongside your accountant and solicitor.
Commercial finance isn’t only about the headline rate. It’s about being matched to a lender that will approve you, structuring the facility so it suits the business long term, and having someone manage the process. Here’s what working with us looks like.
We compare commercial facilities across a broad panel of major banks, second-tier lenders, non-bank funders and specialist commercial lenders, so you see a genuine spread of options. We match the deal to the lender most likely to approve it at a competitive rate, which often isn’t your everyday bank.
You deal with experienced brokers who expect to see trusts, companies, partnerships, partner distributions and complex security, and who know how to present your structure to a lender accurately rather than force-fitting it into a generic application.
From the first conversation to settlement, we prepare the submission, liaise with the lender, coordinate with your accountant and solicitor, and keep you updated at each stage, so the deal keeps moving and you’re never chasing it.
For most commercial transactions, Loanworx is paid an upfront and trail commission by the lender after settlement, and that commission typically does not change the rate or fees you pay. For more complex scenarios a fee for service may apply, and we’ll disclose it in writing before any work begins. No surprises.
Yes. Business acquisition finance funds the purchase of an existing business or practice, covering tangible assets, goodwill, or both, depending on the deal and the lender. It’s assessed on the target’s earnings, the price, your experience and the security available, and it’s typically funded through a mix of bank debt, vendor finance and your own equity. We help structure the deal so a lender will back it.
Goodwill can often be financed, but it sits with specific lenders and depends on the industry and the quality of the earnings. Where a business has reliable, transferable income, lenders may fund goodwill as a proportion of the purchase price or the recurring earnings. Industries with predictable income, such as professional practices, tend to support goodwill financing better than those with volatile earnings. We match the deal to lenders comfortable with it.
It varies with the deal, the industry and how much of the value is goodwill versus tangible assets. Acquisitions generally need a meaningful equity contribution from the buyer, and vendor finance, where the seller defers part of the price, can reduce what you need upfront and signal their confidence in the business. We’ll give you a realistic picture for your specific transaction.
It helps significantly. Lenders want confidence that you can run the business successfully under new ownership, so relevant industry or management experience strengthens the application, particularly where goodwill is being financed. A lack of direct experience isn’t always a deal-breaker, especially with a strong management team or a transition period from the vendor. We present your background to support the deal.
Often, yes. Many lenders have appetite for established franchise systems with a proven model, and some have dedicated franchise lending programs for recognised brands. The strength of the franchisor, the performance of the specific outlet and your suitability as a franchisee all feed into the assessment. We match franchise acquisitions to lenders who understand the system you’re buying into.
Lenders focus on the target’s earnings, how reliable and transferable they are, the price relative to those earnings, the mix of tangible assets and goodwill, and your ability to run it. A profitable, stable business at a sensible price is far more fundable than a turnaround at a stretched multiple. We help present the target the way a lender needs to see it, working with your accountant on the figures.
Talk through your scenario with a specialist commercial broker, with no cost and no obligation. Call us on 1300 562 696 or get in touch and we’ll be back to you shortly, ready to map out what’s possible for your business.
Disclaimer: The information provided here is general in nature and should not be considered financial, tax or legal advice. You should consult your professional advisers, such as your accountant, solicitor and financial planner, to see whether a particular finance strategy is suitable for your business, ahead of a discussion with us that will be limited to how to arrange any funding required.
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