Leveraged Buyout/Buy-in

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.

Leveraged Buyout/Buy-in
  • This quote won't affect your credit score
  • Dedicated Business Finance Specialist
  • Get access to 120+ lenders

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  • This quote won't affect your credit score
  • Dedicated Business Finance Specialist
  • Get access to 120+ lenders

What is a Leveraged Buyout/Buy-in

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. 

How does a Leveraged Buyout/Buy-in work?

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. 

Leveraged Buyout/Buy-in - Features and benefits through Funding Options

  • 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

Financial product information

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

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Disclaimer:

Funding Options helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. We are also able to make insurance introductions. Funding Options will receive a commission or finder’s fee for effecting such finance and insurance introductions.

*Eligibility criteria apply - see Tide website for full details.

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