Complex Unsecured Acquisition Facility for a Construction Hire Business
13th February 2024
- Client: Two UK-based Entrepreneurs
- Target Business Value: Approximately £11m
- Loan Amount: Circa £9m
In this case, Enness was approached by two UK-based entrepreneurs who were looking to purchase a construction hire company in the UK. The clients had business acquisition experience in multiple fields. They were looking for a lender who would implement a loan to the target company to help with the purchase. They were open to asset finance and cashflow loans to assist the acquisition. The clients had two companies they could use to acquire the business.
The main challenges were sector and leverage. As the target company already leveraged many of its assets, we had to find a lender to look at the deal with the two existing client companies. This would create a strong group EBITDA position rather than leveraging just the construction company's EBITDA. This way they could keep the existing asset finance providers in place and borrow as much as possible.
Moving quickly, we secured terms from a leading private institution that would consider the client's previous experience and existing businesses. Our solution to the client was a circa £9m loan over five years for the three companies.
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