Expansion and management buy-outs were the main reasons for business acquisition funding, recent research by Asset Advantage found.
Over half (53%) of commercial finance brokers said clients mainly wanted to expand their current businesses.
One in four picked management buy-outs, where existing management teams look to buy the business they work for or buy out a partner.
Just over a quarter (27%) said management buy-ins were also a key reason, where a new management team takes over an existing business.
25% said business mergers or funding to buy out a competitor were drivers for acquisition funding.
The findings come as Asset Advantage is set to host a business acquisition webinar for brokers, covering how to secure funding for a business purchase.
The session will look at helping clients to buy a business, buy out a partner or complete a management buy-in.
It takes place on 5th November, from 11:00 to 12:00, with brokers able to register online.
Gary Thompson (pictured), 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.”
Thompson added: “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.”
