Funding Mergers & Acquisitions
Fast Funding
Funds available quickly, with streamlined approvals and expert support for time-sensitive transactions.
Flexible Limits
Facility sizes up to $200M, secured against multiple asset classes - tailored to your deal.
No Cross-Collateralisation
Unlike traditional loans, our solutions maximises leverage on assets without cross-collateralisation.How M&A funding can help your business
ScotPac’s funding solutions helps businesses unlock capital to fund acquisitions, support business integration, manage cash flow, and respond rapidly to strategic opportunities – without the constraints of traditional lending.
How M&A funding works
ScotPac can provide flexible funding facilities secured against a blend of business assets – debtors, inventory, property, or plant & equipment.
Access funds based on asset values, with fewer covenants and faster approvals.
Our pragmatic approach means you can focus on executing your deal, not navigating red tape.
Award winning Asset Based Finance
With ScotPac, you get the speed and flexibility of a specialist lender, plus the reliability and knowledge of a major funder. 35+ years’ experience, $2.5BN+ funded annually.
Eligibility?
How do you know if your business qualifies for M&A funding? At ScotPac, we make it easy for businesses to access the funding they need for mergers and acquisitions. Here’s what we look for:
- B2B Operations: Your business sells goods or services to other businesses and holds assets such as receivables, inventory, property, or plant & equipment.
- Trading History: Typically, a minimum of 12 months in operation, with established asset values and consistent financial performance.
- Australian Operations: Your business is registered and operates in Australia, with assets located domestically.
- Creditworthy Debtors: Your customers are creditworthy businesses with a reliable payment history.
Not sure if M&A funding is right for you? Our team is here to help – contact us for a tailored assessment and discover how we can unlock your business potential.
Frequently Asked Questions
How Is Merger and Acquisition Financing Different From a Bank Loan?
A traditional bank loan is subject to strict lending criteria. The lender will analyze your anticipated earnings and credit score and will typically require property security. This type of funding is often subject to covenants and financial requirements that restrict how you can run your business.
Asset-based merger and acquisition funding is based on the value of the assets that you can provide as security for financing. The funding provider will still be interested in your business circumstances, but the collateral is the primary consideration for funding. This means you can typically access funding much faster, and funding solutions are much more flexible and can be tailored to the needs of your business.
What Security Is Required?
ScotPac merger and acquisition finance solutions are based on the value of the assets used as security. These assets can include accounts receivable, machinery, equipment, business property, and inventory that you or the target business owns.
We do not require any covenants that interfere with your business decision-making or operations. You retain 100% control of your business.
Can ScotPac Fund Alongside a Bank?
Our solutions can be used as a sole source of funding or in combination with bank financing.
We have decades of experience helping our clients to access the funding they need, and we have a great relationship with all of the major banks in Australia. Our expert team is skilled at structuring funding solutions and can work with traditional lenders.
If you can’t access the total amount you need through bank funding, we’ll structure an alternative solution that generates the capital you need to move forward.
If a Bank Is Involved, Can ScotPac Share Securities?
For most ScotPac merger and acquisition financing facilities, the funding is secured against assets like machinery, equipment, and accounts receivables. If a bank is involved, they will typically provide financing based on your credit rating and property security.
You may find that combining asset-based funding and a traditional bank loan provides the capital you need to complete the merger or acquisition.
Do You Require Covenants?
No. Unlike a loan from a traditional lender, ScotPac does not condition covenants as part of the funding agreement. Covenants are necessary for many conventional business funding solutions, but they can also restrict your business.
Our solutions are designed to provide the funding you need to fuel the growth of your business without interference. We believe that you know your company best and should be in control of how you choose to run it.
How Quickly Can I Access Merger and Acquisition Financing?
Every deal involves unique circumstances, but we can usually provide funding much faster than a traditional lender. Our team will work with you throughout the process to make sure it progresses as quickly and as smoothly as possible.
We’ll review the target’s assets and your business assets to find the best funding solution. Our business finance team are experts at unlocking capital, handling accounts receivables, and structuring tailored funding solutions.
While the exact timeline will depend on the unique circumstances and complexity of the deal, we can provide credit facilities for mergers and acquisitions in as little as 2 weeks.
What Are the Different Methods of Financing Acquisitions?
If you are looking to fund the expansion of your business through a merger or acquisition, there are a range of options available to you, including:
- Exchanging Stock
- Paying with Cash
- Initial Public Offerings
- Loans
- Asset-Based Financing
Here at ScotPac, we provide asset-based funding solutions that can be used as a standalone source of financing or combined with another funding option to complete a merger or acquisition.