Acquisition Finance
Gap Financing Solutions For Business Acquisitions
You have an LOI or purchase agreement. Senior debt is sized. Seller is ready.
The only thing missing is the equity check or subordinated layer that makes the capital stack close.
Financely structures and places gap financing for business acquisitions using mezzanine debt, preferred equity, structured sponsor equity, and bridge capital.
What “Gap Financing” Means In Acquisitions
Gap financing is the capital layer between senior debt and the buyer’s cash equity.
It is used when the buyer cannot or does not want to write the full equity check required by the senior lender.
Common drivers:
- Senior lender caps leverage below purchase price
- Buyer wants to preserve liquidity
- Seller rollover is limited
- Closing timeline is tight
Structures We Arrange
Mezzanine Debt
Subordinated debt behind senior lender. Higher yield, often includes warrants or PIK interest.
Preferred Equity
Equity-like capital with fixed return and priority over common equity.
Structured Sponsor Equity
Third-party equity with return hurdles and control protections.
Bridge Capital
Short-term capital to close while permanent capital is raised.
Typical Deal Profiles
| Metric |
Typical Range |
| Enterprise Value |
$5M to $100M |
| EBITDA |
$1M+ |
| Gap Size |
$500k to $15M |
| Industries |
Services, manufacturing, distribution, software, healthcare, logistics |
What Makes A Gap Capital Provider Say Yes
Quality Of Cash Flow
Recurring revenue, diversified customers, defensible margins.
Post-Close Liquidity
Buyer must retain working capital after closing.
Senior Debt Terms
Reasonable covenants, no structural traps.
Sponsor Track Record
Operators who have closed and run businesses before get better terms.
How Financely Works
Financely operates as a transaction-led capital advisory and distribution desk.
We structure the gap layer, build a lender-ready package, and distribute to private credit funds and specialty capital providers.
If you are unfamiliar with how private credit works, start with What Is Trade Finance
and our overview of Trade Finance Services.
Many acquisition financings combine cash-flow loans with asset-based or receivables-backed structures.
If a credit enhancement is required, see How To Raise Capital Using A Standby Letter Of Credit.
Our Process
1. Feasibility
Review LOI/APA, financials, and senior debt terms.
2. Structuring
Design gap instrument and economics.
3. Packaging
Build credit memo and investor deck.
4. Distribution
Targeted outreach to qualified capital.
Who This Is Not For
- No LOI or signed purchase agreement
- No financial statements
- Businesses with unstable or collapsing cash flow
- Buyers with zero post-close liquidity
Submit Your Acquisition
If you have an LOI or signed purchase agreement and need gap capital to close, submit your deal for feasibility review.