£150k business loan secured for accountancy practice acquisition

One of PMD’s Business Development Directors, John Lloyd, was approached earlier this year by a long-standing business connection regarding some significant growth plans within their already well-established and successful accountancy practice.  

The client’s growth ambitions entail swift expansion via acquisition, with funding required to support the first of a number of planned acquisitions within their pipeline. The target, another successful, owner-managed practice operating for a number of years and based only a short distance away, was chosen not only for its stellar financial performance, but also due to a number of synergies between the two in terms of service offering, reputation, and culture. 

A loan facility of £150,000.00 was required to fund the initial upfront consideration to the exiting owners, as well as cover ongoing deal fees and associated acquisition costs, and provide an element of working capital to facilitate a smooth transition into the new Group. 

Using our intimate knowledge of the funding market, PMD were able to secure an approval for the full amount required within just three days via one of the specialist finance arms of a long-term funder partner of ours. 

This facility represented significantly enhanced terms in comparison to other more generic providers within the sub-£1m loan space, with the possibility of follow on capital to support future acquisitions, and a 4-month approval period, providing the client with ample time to finalise the associated legal works in anticipation of drawdown. 

Once all legal aspects were finalised, the customer was able to draw down on this facility and complete on this first acquisition, with the process now firmly underway to integrate the target and its operations into the group with the assistance of the exiting management team, who have remained in-situ for 12 months in an advisory role.