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 platform connects you with specialized acquisition lenders offering competitive terms.
$50M+
⚠️ Important: Alliance Financing Group 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.