LexisNexis Practical Guidance®
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What is acquisition finance?

The term acquisition finance describes the debt element of the funding for the acquisition of a business. The term is particularly associated with leveraged businesses, ie private equity sponsored buy-outs of businesses using significant amounts of debt finance.

This guidance note describes what is meant by the term “acquisition finance”, the typical tiers of debt which comprise the debt element of an acquisition finance transaction and the advantages from a sponsor perspective of using debt.

See What is acquisition finance?