Acquisition Finance For Sponsors

Add-On Acquisition Financing

Add-on acquisition financing funds a bolt-on purchase by an existing platform company. Financely structures the funding, whether that is an incremental term loan, a delayed draw facility, a refinancing into a larger unitranche, seller paper or new equity, and places it with lenders and investors on a fee-based basis.

Who Is This For?

  • PE-backed and independent sponsor platforms executing a buy and build plan
  • Owner-operated platforms buying a competitor or adjacent business
  • Platforms whose current lender cannot or will not size the add-on
  • Sponsors planning several add-ons who want acquisition capacity in place before the next LOI

What Do You Get From Financely?

  • A review of your existing credit agreement: incremental capacity, permitted acquisition tests and lender consents
  • Options compared side by side: upsize with the current lender, delayed draw term loan, refinance into a bigger facility, or junior capital
  • A pro forma package showing the combined business, synergies you can support, and leverage after closing
  • Placement with existing and new lenders and, where needed, equity or mezzanine providers
  • Coordination of consents, diligence and closing conditions

Financely is an arranger and advisor, not a lender.

What Deal Criteria Do We Typically Look For?

Typical criteria, not hard limits:

  • A platform with a financing history and current financial reporting
  • An add-on target with historical financials and a signed or near final LOI
  • Pro forma leverage and fixed charge coverage that lenders in your segment can accept
  • A credible integration plan and documented synergy assumptions
  • Sponsor or company equity available for part of the price, where the structure needs it

How Does the Process Work?

  1. Submit your deal. Send the platform and target documents below.
  2. Credit agreement review. We map what your current facility allows and where the limits are.
  3. Quote and structure. We reply with a fee-based quote and the recommended route.
  4. Placement. We approach your current lender, alternative lenders and junior capital as needed.
  5. Terms and consents. We compare terms and coordinate amendments or refinancing.
  6. Close. We manage conditions through funding.

What Should You Send Us?

  • Platform financials and the current credit agreement or term sheet
  • Most recent compliance certificate
  • Add-on target financials and the LOI
  • Pro forma model with synergy assumptions
  • Sources and uses for the add-on
  • Your add-on pipeline, if you plan more deals

Related pages

Ready to Fund Your Add-On?

Send your platform credit documents and the target LOI. We will reply with a fee-based quote and the recommended route.

Request A Quote

Frequently Asked Questions

Can my current lender fund the add-on?

Often it can, through an incremental or accordion feature, subject to the tests in your credit agreement. We check that first and compare it with outside options.

What is a delayed draw term loan?

A facility committed at closing that you draw later for permitted acquisitions. It gives you capacity before you sign the next deal.

Should we refinance the platform to do the add-on?

Sometimes a larger refinanced facility is cheaper or more flexible than stacking debt. We model both and show the trade offs.

Can seller notes or earnouts help fund an add-on?

Yes, if the senior lender accepts the subordination terms. See our page on seller notes for business acquisitions.

Do you lend the money?

No. Financely structures and places the financing with third party lenders and investors.

What does it cost?

Our advisory is fee-based. You receive a quote after we review the platform and target.

Disclaimer: Financely is an advisory and structuring platform. We do not guarantee issuance, lender approvals, or transaction closing outcomes. All mandates are subject to underwriting, KYC and AML checks, compliance review, counterparty acceptance, and final provider decisions. This page is provided for commercial information only and does not constitute legal, tax, or investment advice.