Acquisition finance
deals done.
Buying a business is one of the most consequential decisions you will make. The wrong structure loads you with personal risk, chokes post-settlement cash flow, or kills a deal that should have closed. We bring institutional-grade analysis to every transaction. Based in Canberra, connected nationally.
Structure first. Then the deal.
M&A funding is not a rate-shopping exercise. The difference between a deal that closes and one that doesn't is rarely the business itself — it is the funding structure and the advisory behind it.
We model the transaction the way a credit team will read it, build the capital stack around the target's earnings and your tolerance for personal exposure, then run a tight lender process. A small team, working with a small number of clients — so every deal gets the attention it needs. And if the numbers don't stack, we'll tell you before you spend money on due diligence.
Fundability call
We give you an honest read on whether the deal funds before you commit to due diligence or sign an LOI.
Transaction model
Purchase price allocation, funding structure, debt serviceability, and post-settlement cash flow. The foundation of every lender conversation.
Capital stack design
The right mix of senior debt, mezzanine, vendor finance, and equity — cost of capital balanced against risk and certainty.
Lender process to settlement
A fully packaged proposal to the right lenders, then coordination through conditions precedent to a clean settlement.
Transactions we fund.
Business Acquisitions
Full or partial acquisition of an operating business — goodwill, plant and equipment, stock, and customer contracts.
Management Buyouts
Funding for management teams acquiring the business from existing owners, structured to minimise the personal equity required.
Partner Buy-ins & Buy-outs
Financing equity transitions within partnerships — bringing new partners in or buying departing ones out.
Succession & Generational Transfers
Family business transitions, often built on vendor finance, earnout arrangements, and staged settlements.
Bolt-on & Roll-up Acquisitions
Funding serial acquisitions for businesses pursuing a growth-by-acquisition strategy across their sector.
Vendor Finance & Earnouts
Arranging deferred-payment structures where part of the purchase price is funded over time by the vendor.
From first call to settlement.
Acquisition finance demands precision. We don't shop your deal to a panel — we target the right lenders for your specific transaction with a proposal that answers credit's questions before they're asked.
And we'll tell you when not to borrow. If the integration assumptions are aspirational or the debt load won't survive a stress test, better to hear it from us than from a lender three weeks into credit.
Assess the opportunity
We review the target, the deal structure, and your position — then give you an honest view of fundability up front.
Model the transaction
Detailed acquisition models: purchase price allocation, funding structure, debt serviceability, post-settlement cash flow.
Structure the capital stack
The optimal mix of senior debt, mezzanine, vendor finance, and equity — cost balanced against risk and deal certainty.
Run the lender process
A packaged proposal to selected lenders. No shopping — we approach the right ones for your transaction.
Navigate to settlement
We coordinate your solicitor, accountant, the vendor's advisors, and the lender to meet conditions precedent.
Support post-acquisition
Covenant reporting, facility reviews, and any refinancing as the business stabilises under new ownership.
What credit teams actually test.
Every acquisition is different, but lenders consistently focus on the same areas. We address each before anything goes to a lender.
What the business is worth, and how lenders read that value relative to the purchase price.
Proving the target's cash flow can service acquisition debt from day one — stress-tested for a 20–30% revenue reduction.
Enough liquidity post-settlement to run the business without strain.
Minimising personal exposure while satisfying lenders — PPSR, real property, and director guarantees.
Deferred consideration that aligns with cash flow and cuts the day-one funding requirement.
Realistic post-acquisition performance, not projections that won't survive credit assessment.
FAQs
What does M&A funding cover — is it just for large deals?
No. We arrange acquisition finance for transactions ranging from small management buyouts under $1M to mid-market deals up to $30–50M. The lender pool changes with deal size — sub-$5M transactions are typically funded by non-bank business lenders or private credit, while larger deals access the major banks' corporate lending desks or specialist acquisition finance funds. The mechanics are the same: debt structured against the target's earnings and available security.
How do lenders assess serviceability for an M&A transaction?
Lenders focus on the target's EBITDA and the implied debt multiple — most senior lenders will go to 2.5–3.5x EBITDA for business acquisitions with property security, and lower without. They'll also stress-test the P&L for a revenue reduction scenario (usually 20–30%) to confirm debt service remains covered. Management capability post-acquisition is assessed — particularly whether the business is owner-dependent or can operate with new leadership.
Can vendor finance be combined with bank or non-bank debt?
Yes, and it's often a useful tool. Vendor finance — where the seller takes a deferred payment or subordinated note — effectively plugs the gap between what a senior lender will provide and the purchase price. Lenders generally accept vendor finance provided it's subordinated to their debt and the combined debt load remains serviceable. We structure these regularly, particularly for management buyouts where the seller wants ongoing alignment.
What's the difference between a leveraged buyout and a standard business acquisition?
A leveraged buyout (LBO) uses the target's own assets and cash flows as the primary security and repayment source — the buyer contributes equity (usually 30–40%) and uses debt for the remainder. A standard acquisition typically relies on the buyer's existing assets (property, balance sheet) as security alongside the target. LBO-style structures are more common in larger transactions and require lenders with specific acquisition finance expertise — not all business lenders do this well.
The capital stack.
M&A transactions rarely rely on a single source of capital. We build the right mix to optimise your cost of funds and your personal exposure.
Bank funding secured against business assets, property, or cash flow. The lowest cost of capital, suited to established targets with strong trading history. Most senior lenders go to 2.5–3.5x EBITDA with property security, lower without.
Fills the gap between senior debt and equity. Higher cost, but it reduces the cash equity the buyer has to find — often what makes a deal stack up at all.
Specialist lenders who understand M&A. Flexible structures, faster execution, and appetite for complexity that traditional banks can't match.
Who we work with.
Black Mountain Financial
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What to Expect
- Honest assessment of your options
- Response within 24 hours
- Strategic insight, not a sales pitch
- No obligation discussion
Let's Talk About Your Acquisition
Whether you're exploring a potential deal, have a target under LOI, or need to refinance an existing acquisition — we'd welcome the opportunity to review it.
No obligation, no sales pitch. We reply within 24 hours.