Facilitating £2 Million Acquisition Funding for Fintech Multinational Without Personal Guarantee

• Client: Multinational fintech company
• Requirement: Funding to buy out an existing shareholder
• Loan: £2m acquisition finance
• Structure: No personal guarantee
• Funding Requirement: Available on day one

In this case, Enness Global was approached by a large multinational fintech company looking to raise £2 million to buy out an existing shareholder. The transaction was strategically important to the business, allowing the company to gain greater control over its decision-making and pursue its longer-term growth plans.

A key challenge was the requirement for the full funding to be available on day one. The client was also based in the US and did not want to provide a personal guarantee as part of the financing structure. This significantly narrowed the pool of lenders able to accommodate the transaction on the required terms.

Enness reviewed the client’s wider financial position, including its investment portfolio and projected cash flows, to understand the strength of the business and present the opportunity appropriately to potential lenders. Rather than approaching the market with a standard acquisition finance request, we focused on lenders with the appetite and flexibility to consider a multinational fintech business with an international ownership and residency structure.

Using our network of specialist lenders and financial institutions, we identified suitable funding sources and negotiated a bespoke acquisition finance package. A key objective was to structure the facility without requiring a personal guarantee, while also ensuring the funding could be delivered within the client’s required timeframe.

The lender was able to provide the required £2 million acquisition facility without a personal guarantee. Enness also negotiated terms that enabled the client to access the funding on day one, allowing the shareholder buyout to proceed without unnecessary delays.

The resulting facility gave the company the capital required to complete the transaction and increase its control over the business. It also provided the flexibility required by the client to pursue its wider strategic and growth objectives without introducing a personal guarantee into the financing structure.

This case demonstrates how specialist corporate finance can help businesses overcome challenges that may prevent them from accessing conventional lending. International structures, shareholder buyouts, tight completion deadlines and requirements around personal guarantees can all reduce the number of suitable lenders, making the way a transaction is presented and structured particularly important.

Enness works with established businesses and international companies to arrange bespoke corporate finance solutions, including acquisition finance and structured business lending. To discuss your requirements, speak to a mortgage specialist.

Risk Warning:
Business finance carries risks. Borrowers should ensure that proposed borrowing is affordable and supported by realistic cash flow and repayment plans. Failure to meet the terms of a facility may result in enforcement action or other financial consequences for the borrowing business.

Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting and lender criteria. Terms and availability will vary depending on individual circumstances and the proposed transaction.