Business finance for strategic transactions
Funding to help established businesses complete acquisitions, management buyouts and other strategic transactions.
What the funding can be used for
- Management buyouts or management buy-ins
- Acquisitions
- Co-investments
Can a business loan be used to fund an acquisition or management buyout?
Yes. Debt funding can form part of the finance used to acquire another business or complete a management buyout or management buy-in. Mercia Business Loans works with established businesses and management teams seeking funding for strategic transactions where there is a clear commercial rationale and a sustainable plan for repayment.
Funding can support acquisitions that add capability, customers, market share or geographic reach, as well as transactions that enable an existing management team to take ownership of a business.
case studies
Who we've backed
See how management teams and established businesses have used Mercia funding to complete acquisitions and ownership transactions.
Protek Fencing
Leeds-based Protek Fencing used Mercia funding to support a management buyout of the construction and building business.
Location:
Leeds
Sector:
Construction & building
Reason:
Management buyout
Attic Brew Co
Location:
Birmingham
Sector:
Food & drink
Reason:
Acquisition of new premises
Change Accountants
York-based Change Accountants used Mercia funding to support the acquisition of another business.
Location:
York
Sector:
Financial
Reason:
Acquisition of a business
Businesses making their next move
Latest news
Stories, insights and the latest from businesses we back.
Our business loans
How we can help further
If you are looking for funding that’s not between £100,000 and £2million, don’t worry. Our investment team is able to point you in the right direction, either to another Mercia fund or external collaborative partners.
UNCOMPLICATED PROCESS
From hello to funded
Every deal is different. We don’t set artificial timelines. We’ll move as quickly as the deal, and you, allow.
1
Conversation
Today
Tell us about your business, where you’re going and what you need. We’ll quickly work out whether there’s a potential fit.
2
Indicative
1 week
We’ll set out what we believe we can offer and the likely terms, so that you know what you’re working with.
3
Diligence
2-5 weeks
We get into the detail of the business, the numbers, the plan and the information we need to understand the deal properly.
4
Approval
8 weeks
We bring everything together and take the deal through our approval process.
5
Go
Documents signed. Funds released. You make your move.
You set the pace.
Your move
Give us the right information at the right time and we’ll move as quickly as you can.
Are we right for you?
We’re direct about the fit.
Mercia Business Loans isn't for everyone and we won't pretend otherwise. Here's exactly who we lend
to, and who we point elsewhere.
You’ll likely qualify if:
- You’re an established SME with strong trading
Ideally supported by audited accounts. - You have a clear purpose for the funding
Growth and expansion, assets and equipment, or a transaction. - Your business can support the borrowing
Your plan and financials demonstrate a clear ability to meet repayments. - You have a strong management team
People who understand the business, know the numbers and can answer the hard questions.
...or we will suggest other options
- Pre-revenue or seed-stage businesses
Mercia Ventures may be a better fit. - Sole traders or unincorporated businesses
- Businesses in active distress or insolvency proceedings
- Loan requirements below £100k
We have partners who specialise.
Case Study - Transactions
York
Change Accountants
Mercia Business Loans can help accelerate your business growth.
Founder of Change Accountants, Stacey McVeighty, outlines the reasons why she took growth funding to bolster the growth of her accountancy business after acquiring another local practice in York.
Frequently Asked Questions
Mercia Business Loans supports growing and established SMEs across the North and Midlands with a focus on the Yorkshire and the Humber and the West Midlands with funding from £100,000 to £2million, helping ambitious management teams with their growth plans.
Frontier Development Capital is part of Mercia Asset Management PLC and deploys the Midlands Engine Investment Fund II (MEIF II) to established SME businesses, offering business loans between £100,000 and £2million.
Mercia Business Loans deploys across the North and Midlands with a focus on the Yorkshire and the Humber and the West Midlands regions via the Northern Powerhouse Investment Fund (NPIF II) and the Midlands Engine Investment Fund II (MEIF II) funds respectively.
Businesses can borrow from £100,000 to £2million.
Typically, our loans will be over a 12–60-month term. We can occasionally accommodate a short capital repayment holiday if required.
The fund is largely sector agnostic, meaning we can lend to most businesses.
The funding can be used in a variety of different ways including working capital, recruiting new teams, launching a new product or service, new larger premises, purchasing new machinery and equipment, acquisitions, and supporting share transactions such as management buyouts and management buy-ins (the latter by exception).
Don’t worry, our investment team are able to point you in the right direction, either to another Mercia fund or external collaborative partners.
An initial conversation with our investment team is the first step where you can set out your funding needs and where you want to take the business.
At Mercia Business Loans we know every business is different. Depending on the complexity of the business, your Investment Manager will outline what information is required to progress your application. Common financials which we would require include financial accounts, management accounts and budgets.
Transactions FAQs
Yes. Debt finance can be used as part of the funding package for a business acquisition where the transaction has a clear commercial rationale and the enlarged business can demonstrate a sustainable ability to service the borrowing.
Funding may be available to support management buyouts or management buy-ins, depending on the business, transaction structure and repayment profile.
Acquisition finance can help an established business buy another company to add customers, capability, market share, products, services or geographic reach.