Business Acquisition Finance

Spartan’s Business Acquisition Finance is specifically developed for entrepreneurs wanting to acquire a competitor, supplier, additional business or acquire fellow shareholders’/partners’ shareholding – and require a structured finance solution in order to do so.

This is where Spartan’s structured finance comes in… our Business Acquisition Finance is a highly customised and uniquely tailored solution based on the entrepreneur’s individual business context. For that reason, we take the time to understand you and your business opportunity in making a decision around the finance – a traditional ‘vanilla’ funder is not able to take the time to understand and specially structure something that is unique to the SMEs context.

But not every acquisition is a fit for our finance – does your opportunity line up with the below?

When to use Spartan’s Business Acquisition Finance

The typical scenarios that a business would require Business Acquisition Finance for:

  1. you want to acquire a competitor – maybe its a distressed or retiring competitor and it’s an opportunity and you need to be nimble and fast to acquire this competitor, the banks don’t usually get involved in funding acquisitions for SMEs – it’s a no man’s land
  2. the business could be acquiring a company within the value chain so you could be in the transport business but want to acquire warehousing – so it’s a different context
  3. you want to acquire fellow shareholders’/partners’ shareholding
  4. need between R1M and R75M

Have you or can you do these things ..?

  • you have done a proper due diligence – you’ve assessed & determined the business valuation/price

  • you have wisely negotiated the purchase price, payment terms and key terms (e.g. restraints, etc.)

  • full-time involvement in the acquired business

  • if you are contributing a deposit [own contribution] and/or collateral

Important key questions for yourself [and for Spartan] …

  • what are your deeper reasons for buying this business ?

  • what are the real reasons behind the seller deciding to sell the business ?

  • what are you buying – are you buying the assets out of the business or are you buying the shares in the business ?

  • ?

  • how does the business make its money ?

  • can the existing/historic net profit comfortably repay the business acquisition loan over 3-5 years ?

Our minimum finance criteria …

  • Loan amount from R1M to R75M
  • you are a small to mid-sized business [SME] in operation for 3 or more years
  • with a minimum annual turnover of R10M, or
  • alternatively with an annual turnover between R5M – R10M, provided there is some current growth context [for example a contract, project or acquisition]
  • read more about how our process works and what you will need

Our Process

Find out what we need to back you …

FAQ’s

Do you have questions about our financing ..?

Let’s get the conversation started …

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