Business Acquisition Finance

Spartan’s Business Acquisition Finance is specifically developed for entrepreneurs wanting to acquire a competitor, supplier, additional business or invest in a franchise 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 entrepreneurs 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?

Why use 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 its its 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 – its 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 its a different context
  3. maybe there’s a BEE partner you want to get into the business or maybe the BEE partner wants to buy into the business and again its not a typical thing that a bank would do – certainly not in the SME segment
  4. another growth need could be that you want to buy your premises – you need funding to acquire this premises but perhaps a bank only gives a bond of 60-70% – how do you fill the gap?
  5. you want to acquire a new or existing franchise 

When our Business Acquisition Finance is a match for you …

  • 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

  • any draft docs or purchase agreements in place

  • if its a franchise opportunity: the master franchisor must be established with a proven track record

Important questions to consider …

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

  • what are your deeper reasons for buying this business?

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

  • ?

  • how does the business make its money?

How Business Acquisition Finance works …

Spartan provides a structured finance solution because each growth context may be unique so we take a suite of our normal funding products which could be longer term funding, shorter term funding, perhaps a combination of these – we’ll bring these to the table in a way that is structured to meet the growth need for the particular business – its a customised and highly structured solution – that’s the big emphasis of our finance.

Business Acquisition Finance

Our minimum finance criteria

  • minimum finance amount from R1M up to R25M
  • 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 our Finance Criteria

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