According to a survey from Asset Advantage, 53% of commercial finance brokers said clients looking to grow their current business was the primary motive.
However, a quarter picked MBOs as the main motive for securing funding.
Around 27% said management buy-ins were a “key driver” behind transactions and around 25% said business mergers or funding to buy out a competitor were the top driver of business acquisition funding.
Asset Advantage will host a session on how to best support clients when buying a business, buying out a business partner or completing a management buy-in. It will take place on 5 November between 11am and 12pm and brokers should register on the Asset Advantage website.
Gary Thompson, sales director at Asset Advantage, said: “Even in the current climate, UK SMEs are not only showing real resilience, but a clear appetite to expand and scale – either driven by existing business owners or their management teams making moves happen.
“The findings mirror what we’re seeing on the ground, with growing demand and increasing use of business loans to fund all types of acquisitions. Working with SMEs, these deals can be complex and require a funder that is fully flexible, pragmatic and adopts a holistic approach to transactions and the parties involved.
“The aim of our upcoming webinar is to talk brokers through the process of completing a business acquisition transaction, so they can communicate confidently with their client. With our open-minded approach to funding and expertise in this area, it is a good opportunity for us to support brokers and their clients in buying a business.”
