Business Acquisition Financing

Business Acquisition Loans

Business acquisition financing provides capital to purchase established businesses, acquire competitor operations, or execute management buyouts. Whether you're expanding through acquisition, investing in a new business venture, or executing a leveraged buyout, our AI connects you with specialized acquisition lenders offering competitive terms.

$500K-
$50M+

Loan Amounts

5-25 Years

Loan Terms

10-30%

Down Payment

⚠️ Important: Alliance Financing AI partners with specialized acquisition lenders to facilitate business acquisition financing. We match your requirements with qualified lenders in our network who specialize in business acquisition lending. Specific broker details will be provided upon approval.

Types of Acquisitions We Finance

Asset Purchases: Acquire specific business assets, brand, or customer lists
Stock Purchases: Acquire majority or minority equity stakes in established companies
Merger Financing: Finance the consolidation of two or more businesses
Management Buyouts (MBO): Enable management teams to acquire the business
Leveraged Buyouts (LBO): Maximize equity returns with strategic debt financing
Competitive Acquisitions: Finance growth through acquisition of competitors

Types of Acquisition Financing

SBA 7(a) Loans: Finance up to 90% of acquisition with 10% down payment and favorable terms for established businesses.

Conventional Acquisition Loans: Non-SBA business acquisition financing with flexible structures based on cash flow and asset value.

Seller Financing Bridge: Bridge funding while arranging permanent financing or during earnout payment periods.

Working Capital for Acquisition: Additional funding to support operations and integration post-acquisition.

Who Qualifies?

Target business generates positive cash flow or has growth potential
Debt Service Coverage Ratio (DSCR) of 1.25+ preferred for SBA loans
10-30% down payment depending on financing structure
Credit score of 680+ for best rates (some programs 620+)
2+ years business experience (preferably in the target industry)
Strong personal credit history and relevant business experience

Key Metrics Lenders Evaluate

Loan-to-Value (LTV): Most lenders finance 70-90% of acquisition price for SBA loans, 60-75% for conventional. Higher down payment = better rates.

Debt Service Coverage Ratio (DSCR): Target business cash flow divided by total debt payments. Lenders want 1.25x+ (25% more income than debt).

Acquisition Price vs. Earnings: Business valuation multiples and earnings stability determine financing structure and rates.

Borrower Strength: Your credit, liquidity, relevant experience, and management team all factor into approval and rates.

Benefits of Business Acquisition Financing

Accelerate Growth: Acquire established businesses faster than organic growth allows
Immediate Revenue: Acquire profitable businesses with existing revenue and customer base
Synergies: Combine operations to achieve cost savings and operational efficiencies
Market Expansion: Enter new markets or geographic regions through acquisition
Leverage: Control valuable businesses with relatively small equity investment

Typical Rates & Terms

Interest Rates: 6-12% depending on business profile, market conditions, and borrower strength

Loan Terms: 5-25 years (often 7-10 year amortization for SBA loans)

Down Payment: 10-30% depending on loan type and borrower

Closing Costs: 2-4% of loan amount (includes SBA guaranty fees)

Prepayment Penalty: SBA loans typically no penalties; conventional loans vary

*Rates based on market conditions, business strength, DSCR, and borrower creditworthiness. All financing facilitated through Alliance Financing Group's lender network.