Business Acquisition Financing
Strategic capital to acquire operating businesses. We structure financing that leverages existing assets, minimizes your cash outlay, and positions you for a profitable ownership transition.
What Is Business Acquisition Financing?
Business acquisition financing provides the capital needed to purchase an existing, operating business. Rather than starting from scratch, buyers acquire companies with established revenue, customer bases, and operational infrastructure. The financing is structured around the target company's cash flow, assets, and overall value rather than solely on the buyer's personal financial profile.
Acquisition financing can take multiple forms depending on the deal structure: SBA loans, conventional bank financing, seller financing, asset-based lending, or a combination of these. The right structure depends on the size of the acquisition, the financial health of the target business, the buyer's experience, and the amount of equity available.
On Top Funding specializes in structuring acquisition deals that minimize your out-of-pocket capital while maintaining favorable terms. We analyze the target company's financials, determine supportable debt levels, and build a financing package that aligns the purchase price with available cash flow.
What We Provide
Purchase Price Analysis
We evaluate whether the asking price is supported by the company's cash flow, comparing it against industry standards and multiples to ensure you are not overpaying.
Acquisition Financing
We structure the capital stack by leveraging the target company's existing assets to maximize financing and keep your cash contribution to a minimum.
Equity Gap Solutions
If there is a shortfall between the financing amount and the purchase price, we identify additional capital sources including mezzanine debt, seller notes, and equity partners.
Post-Acquisition Working Capital
Beyond the acquisition itself, we provide working capital facilities to ensure the business operates smoothly during the ownership transition period.
Seller Financing Negotiation
We advise on structuring seller carry-back notes that reduce closing capital requirements while giving the seller confidence in the transition.
Due Diligence Support
Our team reviews financials, tax returns, and operational data to identify risks and ensure the deal fundamentals support the proposed financing structure.
Loan Criteria
| Criteria | Details |
|---|---|
| Loan Amount | $250K to $10M+ |
| Loan Types | SBA 7(a), Conventional, Asset-Based, Seller Financing, Mezzanine |
| Term | 5 to 25 years depending on structure and collateral |
| Down Payment | Typically 10% to 20% depending on program and borrower qualifications |
| Minimum FICO | 680+ (varies by program) |
| Business Requirements | Target business must demonstrate consistent revenue and positive cash flow; minimum 2 years operating history preferred |
| Industries | Most industries considered; manufacturing, services, healthcare, distribution, and professional services are common |
| Collateral | Business assets, real estate, accounts receivable, inventory, and equipment of the acquired entity |
| Rates | Competitive rates based on deal structure, borrower profile, and program type |
Who Is This For?
First-Time Buyers
Entrepreneurs acquiring their first business who need guidance on deal structure, financing options, and the acquisition process from LOI to close.
Serial Acquirers
Experienced operators building a portfolio of businesses through strategic acquisitions who need reliable, repeatable financing structures.
Management Buyouts
Existing management teams looking to acquire ownership from a departing founder or ownership group with structured transition financing.
Partner Buyouts
Business partners looking to buy out a co-owner's equity stake while maintaining operations and avoiding disruption.
Our Process
Initial Consultation
We review the acquisition opportunity, your background, available capital, and timeline to determine the best financing approach.
Deal Analysis
We analyze the target company's financials, cash flow, assets, and industry to validate the purchase price and determine supportable debt levels.
Structure the Financing
We build a capital stack that minimizes your equity requirement while maintaining favorable terms, combining multiple sources when appropriate.
Lender Matching
We present the deal to lenders who specialize in acquisition financing and negotiate the most competitive terms available for your profile.
Close and Transition
We coordinate with attorneys, title companies, and the seller to ensure a smooth closing and provide post-acquisition working capital as needed.
Ready to Acquire a Business?
Contact our team to discuss your acquisition opportunity. We will evaluate the deal, structure the financing, and guide you through the process.
On Top Funding is a commercial lending advisory firm. We are not a direct lender. All loan programs are subject to lender approval, borrower qualification, and market conditions. Terms, rates, and availability are subject to change without notice. This page is for informational purposes only and does not constitute a commitment to lend or a guarantee of any specific terms.
Business Acquisition
Financing
On Top Funding is a specialist in providing you with the necessary capital to fund any company you wish
to acquire.
Services we provide:
Analysis of the purchase price. We determine if the purchase price can be supported based upon the cash flow of the acquired entity.
We do an in depth analysis to determine whether the purchase price is within the standards of the industry.
Financing to purchase the company. We do this by leveraging the existing assets of the company to the maximum amount based upon cash flows available, keeping your cash requirements to a minimum.
We can also provide the equity necessary should there be a cash shortfall between the financing and the cash you are putting into the transaction.
Please contact us today
for a free evaluation of
your financing needs from
one of our finance
specialists.
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This is not an offer to lend. All offers of credit are subject to due diligence, underwriting and approval. Not all borrowers will qualify and not all borrowers that qualify will receive the lowest rate or best terms. Actual rates and terms depend on a variety of factors and are subject to change without notice.
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