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• 20 Jan

  Acquisitions FundInvoice Are Supporting

  At present, we are working on 3 potential acquisitions that require some form of invoice funding, and at are various stages of the business purchase process. Acquiring a company can be a great way of growing your business income and profitability.

  Acquisitions

  The three cases FundInvoice are currently working on are as follows:

  1. A civil engineering company in the construction sector looking to raise higher prepayment levels than they have been able to achieve searching for a facility themselves.
     
     
  2. A business acquiring another that has already pledged its assets to a lender. We are finding the acquirer funding against their own assets, to help raise the purchase consideration.
     
     
  3. A manufacturing company acquiring a larger company, where funding against the target company's sales ledger will help to meet deferred payments.

  These situations are against a backdrop where the number of UK acquisitions appears to have ticked up over the last couple of years, and businesses are looking for increasingly innovative ways of raising the finance required to acquire other companies.

  Funding Acquisitions Using Invoice Finance

  I have written before about how invoice finance can be used to either contribute towards the funding of the acquisition of another business, or how it can be provided to a company that you are acquiring, in order to level out their cash flow.

  I have also written previously about one of our contacts was looking for potential acquisition targets, for one of their clients. All in all, this would suggest that there appears to be some areas of confidence within the UK economy, which is a positive sign.

  Underlying Trend

  Although it is only based on our own experience, we are seeing companies becoming more acquisitive, and this appears to be reflective of an underlying trend suggested by figures released by the Office for National Statistics which appear to show an increase in domestic mergers and acquisitions (M & A) in the last few years.

  Accessing Support

  We have a number of connections with business people that are actively seeking target companies to acquire, and this is proving to be developing into an interesting niche but we can provide support. This is a recent testimonial following a company purchase that we were able to help find the funding that they needed: Acquisition Funding Testimonial.

  If you need help accessing support regarding receivables financing in connection with an acquisition, please contact Sean on 03330 113622.

  By Glenn Blackman