A typical funding stack
| Layer | What it does | Typical size |
|---|---|---|
| Senior cash-flow debt | Term loan sized on the target's EBITDA | Up to around 4x to 5x EBITDA |
| Asset based lending | Funds working capital and part of the price from receivables and stock | Up to 90% of eligible debtors and stock values |
| Vendor loan note | Seller defers part of the price | Often 10% to 30% of the price |
| Buyer or management equity | Shows commitment; private equity can co-invest on larger deals | Varies with the deal |
Who lends at this size
| Lender type | Best for |
|---|---|
| Bank leveraged and acquisition finance teams | Profitable targets with a strong track record |
| Challenger banks | Owner-managed businesses and first-time acquirers |
| Independent ABL lenders | Asset-rich targets, or where cash-flow lending alone falls short |
| Private credit funds | Higher leverage, unitranche structures, buy-and-build platforms |
What lenders look for
- Stable, provable earnings at the target, ideally with three years of accounts
- A management team that can run the business after completion
- Equity or vendor support, so the buyer has real money at risk
- Sensible leverage and headroom against covenants, with a credible integration plan
How long it takes
Typically 8 to 16 weeks from heads of terms, running alongside legal and financial due diligence so the funding is ready when the deal is.
How GBF runs an acquisition raise
We model the deal, size each layer of debt, approach lenders in parallel and negotiate terms. We then work with your lawyers and accountants so funding, due diligence and completion stay in step.