Business Acquisition Financing — Indicative Term Sheet

Business Acquisition Financing: Indicative Term Sheet

Business Acquisition Financing: Indicative Term Sheet

Financely structures, underwrites, and places acquisition finance for qualified buyers. Facilities include senior, unitranche, and mezzanine tranches. Where equity is short, we arrange gap solutions alongside the buy-side process. Bank, lender, and counsel costs are for the client’s account and fall outside our fee scope.

Key Parameters

Eligibility
  • Corporate buyers, sponsor-backed platforms, or management teams with a clear acquisition plan.
  • Audited or review-level financials on the target and buyer.
  • Clean ownership and source of funds passing KYC/AML.
  • Indicative facility size: USD 5M to USD 200M. Smaller or larger by exception.
Use Of Proceeds
  • Purchase consideration, fees and taxes, refinancing of target debt, and growth capex as agreed.
  • Working capital at close may be included subject to lender approval.
Facility Types
  • Senior: amortizing or bullet, covenant-based.
  • Unitranche: single blended tranche for speed and certainty.
  • Mezzanine: subordinated, cash/PIK mix, warrants possible.
  • Gap financing: seller notes, preferred equity, holdbacks, earn-outs.
Tenor & Pricing
  • Tenor: 3 to 7 years typical. Unitranche often 4 to 6 years.
  • Pricing: lender driven; margin reflects leverage, cash flows, and jurisdiction.
  • Security: share pledge, all-asset debenture, guarantees, and account control as required.

Jurisdictions & Governing Law

Financely arranges cross-border deals with documents typically governed by New York law or English law. Local security follows the law of the collateral location. Execution focus includes:
  • United States & Canada: Delaware or New York law documents; UCC filings and intercreditors as applicable.
  • United Kingdom & EU: English law facility documents; local perfection and registrations in member states.
  • Middle East (UAE) & GCC: onshore and free-zone structuring with local counsel and pledge registrations.
  • Africa (selected markets): deals proceed with local counsel for exchange controls, approvals, and security filings.
  • Other jurisdictions by review. Sanctions, AML, tax, and FX rules apply in full.

Underwriting & Execution Process

1

Intake & Screening

Buyer profile, target overview, historicals, forecast, and structure. Initial KYC/AML and conflict checks.

2

Indicative Terms

Debt sizing range, leverage guardrails, proposed tranches, security, covenants, and timeline.

3

Due Diligence

Financial, legal, tax, commercial, and operational workstreams in a secure data room. Draft LMA or NY-style documents.

4

Structuring & Approvals

Credit memos, IC packages, term sheet finalization, intercreditors, and CP checklist with counsel.

5

Closing & Funding

CPs satisfied, security perfected, funds flow agreed, and drawdown at completion.

Fees & Economics

Fee Basis Range / Example Payable
Engagement Retainer Fixed cash retainer to fund underwriting work USD 25k to USD 95k depending on scope On mandate signing; non-refundable
Underwriting Fee Flat or % of facility for full credit workup 0.50% to 1.25% or a fixed amount At term sheet acceptance or at close as agreed
Success Fee % of debt placed and gap capital arranged 1.5% to 3.0% of funded amounts Deducted from proceeds at closing
Lender & Legal Costs Third-party costs for lenders and counsel At cost; estimates provided during CP process As incurred or via expense deposit

Note: OID, ticking fees, and call protection are lender specific and disclosed in the lender term sheets.

Security Package & Covenants

  • Share pledge over the acquisition vehicle and target; all-asset security where required.
  • Parent or sponsor guarantees if leverage or cash flows require extra support.
  • Debt incurrence, distributions, capex, and M&A baskets sized to the agreed model.
  • Reporting: monthly management accounts, quarterly covenant tests, annual audited financials.

Gap Financing Options When Equity Falls Short

We can combine one or more of the following to close the equity gap:
  • Seller note with intercreditor agreement and payment deferral.
  • Preferred equity with PIK coupon and waterfall priority.
  • Mezzanine tranche sitting beneath senior or unitranche.
  • Earn-out and holdback tied to performance KPIs.

Request Your Term Sheet

Share buyer profile, target details, EBITDA, purchase price, and available equity. After screening we prepare and send an indicative term sheet with structure, fees, and next steps.

Request Your Term Sheet

This is a non-binding, indicative term sheet for discussion. All facilities are subject to due diligence, full KYC/AML screening, lender credit approval, legal documentation, and jurisdictional requirements including security perfection, tax, FX, and sanctions compliance. Financely acts as arranger and underwriter and does not guarantee funding.

Get Started With Us

Submit Your Deal & Receive a Proposal Within 1-3 Working Days

Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.


All submissions are promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.

Express Application Submit Your Deal
Request a Proposal
Request a Proposal / Submit a Deal

Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.

Trade Finance

Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.

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Project Finance

Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.

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Acquisitions

Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.

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For Banks

Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.

Submit a Request

Once we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.

Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.