Financing the acquisition: combining contribution, debt and investors

Acquisition financing usually combines several complementary sources:

• The acquirer's personal contribution, which reassures financiers and often conditions the rest of the structure.
• Bank acquisition debt, repaid from the acquired company's cash (via the holding where applicable).
• Public guarantees, which secure part of the debt for the lender.
• The entry of investors (funds, business angels, co-acquirers) as a complement, in exchange for a share of the capital.
• Possible vendor financing, when the seller agrees to be paid partly in instalments.

Relying more on debt preserves your control but increases repayments; bringing in investors eases cash-flow pressure but dilutes your capital and introduces new decision-makers.

The right balance depends on the deal size, your contribution, the target's repayment capacity and your project. Vendor financing, where negotiable, also aligns the seller's interests with the success of the transition.

Acquisition-financing players, public guarantees and investment instruments differ by country. National development banks, regional funds and European access-to-finance schemes do not have the same criteria everywhere.

The module structures your financing plan without assuming a France-centred framework. The precise instruments must be confirmed with players in the target's country.

A convincing acquisition financing file rests on the post-acquisition forecast (debt sustainability), the target study and the acquisition business plan. The stronger these documents, the more credible your approach to financiers.

The financing module is available via the Solutions AI page. Pair it with the forecast and the acquisition business plan for a consistent file.