Acquisition Finance For Sponsors

Carve-Out Acquisition Financing

Carve-out acquisition financing funds the purchase of a division, product line or subsidiary from a larger company. Financely structures the debt for a business that has never stood alone, covering the purchase price, separation costs and standalone working capital, and places it with lenders on a fee-based basis.

Who Is This For?

  • Sponsors buying a non-core division from a corporate seller
  • Management groups acquiring the business unit they run
  • Strategic buyers acquiring a product line or subsidiary
  • Buyers whose target has carve-out financials rather than audited standalone accounts

Why Carve-Outs Are Harder to Finance

  • Historical financials are carved from the parent and include allocated costs
  • Shared services such as IT, finance and HR must be replaced or covered by a transition services agreement
  • One-time separation costs add to the funding need
  • Working capital has to be built up for the standalone business
  • Lenders need a credible standalone cost base before they size the debt

What We Arrange

  • Senior or unitranche debt sized to pro forma standalone earnings
  • ABL facilities secured on the receivables and inventory transferred with the business
  • Delayed draw or capex lines to fund separation and systems costs
  • Junior capital and seller paper where the parent is willing to retain part of the risk

How Does the Process Work?

  1. Submit your deal. Send the LOI, carve-out financials and draft TSA terms through the quote form.
  2. Review and quote. We assess fundability and reply with a fee-based engagement quote and a proposed structure.
  3. Package. We build the standalone case, pro forma adjustments and lender materials with you.
  4. Placement. We approach lenders active in carve-out transactions.
  5. Term sheets. We compare offers on leverage, pricing, covenants and separation funding.
  6. Close. We coordinate QoE, diligence and documentation to funding.

Related pages

Ready to Finance Your Carve-Out?

Send your LOI and carve-out financials and we will reply with a fee-based quote and a proposed structure.

Request A Quote

Frequently Asked Questions

What is a transition services agreement?

A TSA is a contract under which the seller keeps providing services such as IT, payroll or logistics to the carved-out business for a period after closing, while it builds its own.

Can lenders rely on carve-out financials?

Yes, if the carve-out accounts and pro forma adjustments are well supported. A quality of earnings review is usually expected.

Can the financing cover separation costs?

Often, through a delayed draw or capex facility, or by sizing the closing funds to include them.

Will the seller provide financing?

Some corporate sellers accept a seller note or retain a minority stake. It depends on the seller and is negotiated in the deal.

Is Financely a lender?

No. Financely structures the financing and places it with third party lenders who make their own credit decisions.

How is your work paid for?

Financely charges a deal review fee, then a retainer and a success fee agreed in writing before work begins. You receive a quote after we review the deal.

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.