At Churchill Commercial Funding, we help businesses expand through acquisition or facilitate a partner buyout.

We work with business owners, prospective owners, and business brokers.

Business Acquisition Financing

Securing the necessary funding is often a crucial step when expanding your business through acquisitions or purchasing an existing company. Business acquisition financing is pivotal in making such strategic moves a reality. We have a large number of SBA and non-SBA lenders in our network.

What Are Business Acquisition Loans?

Business acquisition loans are specialized financial products designed to give entrepreneurs and companies the capital to acquire or merge with another business. These loans can cover a wide range of expenses associated with the acquisition process, including the purchase price of the target company, due diligence costs, legal fees, and more.

Types of Business Acquisition Financing

here are several types of business acquisition financing to consider, each with its unique features:

SBA 7(a) Loans: These loans, backed by the Small Business Administration (SBA), offer favorable terms and low interest rates, making them an attractive option for small businesses looking to acquire other companies.

When using SBA 7(a) loans, loan terms are typically ten years (more if real estate is included). Interest rates are competitive, and fixed rates are available. There are often no prepayment penalties. Financing to 90% and sometimes even 100% for a partner buyout.

Commercial Acquisition Loans: Traditional commercial loans provided by banks and financial institutions can also be used for business acquisitions. They may have varying terms and requirements. Asset-based lenders also fall into this category.

Equity Financing: Some entrepreneurs partner with investors or venture capitalists to secure the necessary funds for an acquisition. This often involves giving up partial ownership in exchange for capital.

Sub-Debt and Stretch Lenders: These lenders offer access to additional financing beyond what the primary lender provides.

The Acquisition Process and Due Diligence

Before obtaining financing, it’s crucial to understand the acquisition process thoroughly. Due diligence is critical in evaluating the target company’s financial health, assets, liabilities, and potential risks. Lenders and investors will also conduct their due diligence to assess the viability of the acquisition.

Determining the target company’s value is essential for securing the right amount of financing. Business valuation methods, such as market analysis, income valuation, and asset-based approaches, help set a reasonable purchase price. Crafting a solid acquisition strategy that aligns with your business goals is equally vital.

Choosing the Right Lender for Your Business Purchase

Selecting the right lender or investor is a critical decision. The advantages of working with Churchill Commercial Funding are:

• We have a large and growing universe of lenders and stay up to date with their preferences regarding deal size, industry, and asset types. This can make all the difference in getting the deal done and saving valuable time.

• We carefully select all of our lenders, ensuring that they possess a team of highly skilled SBA loan specialists with a track record of swiftly evaluating, pre-approving, and successfully closing loans. Additionally, our chosen lenders maintain ample resources in terms of underwriting and closing staff to ensure a seamless and efficient loan processing experience.

• We provide a custom structure that provides sufficient long-term financing and access to working capital.

• We will get you the most flexible and aggressive terms through our extensive knowledge of the lenders.

• We will support you throughout the transaction and provide a consultative and “high touch” service.

• We have extensive experience with SBA lenders, private lenders, gap funding lenders, bridge lenders, private equity, venture capital, and private investors – and always bring this experience to the table.

Ready to get started? Please call us at 734-368-1339 or Apply Here.