Service overview: Acquisition finance and leveraged debt lawyers
Acquisition finance is the provision of bank loans or the issue of bonds to fund the acquisition of a company (or parts of a company). This finance can be provided to an existing internal management team (a management buy-out), an external management team (a management buy-in), or a third party (an acquisition).
Leveraged acquisition finance is a type of acquisition finance, when a company, usually with a considerable amount of existing debt, attempts to acquire another company.
Leveraged finance can be used to achieve a specific, but often temporary, purpose. These include; funding an acquisition, a buy-out, or for a one-time dividend.
For a lender, if a potential borrower already has a lot of debt, it implies that the funding is riskier. This may make the borrowing more expensive than normal for the borrower.
Leveraged debt financing often involves different layers of finance, which can seem complicated. These range from a senior secured bank loan or bonds to a subordinated loan. Therefore, if you find yourself dealing in this area, you’re likely to require specialist banking law advice.
What we do: Acquisition finance and leveraged finance solicitors
Our acquisition finance solicitors can advise you on securing leveraged finance for your business, or if you’re looking to secure a buy-in, buy-out or acquisition of a company. We can assist you with your requirements and walk you through these processes to guarantee a smooth transaction. Some of the typical documents, agreements and services we would help your business with include:
syndicated loan agreements
credit and security arrangements
intercreditor arrangements, such as mezzanine, PIK and second-lien debt, or deeds of priority
A key consideration is to calculate how each type of finance should be raised: if the ability of a company to service its debt is overestimated, the lender may lend too much at a low margin and be left holding loans or bonds they can’t sell to the market. If the value of the company is underestimated, the deal may be lost.
Our finance solicitors will also work closely with our corporate and tax teams to cover all aspects of your deal, so the legal work is seamless for your entire transaction.
Who we help: Borrowers, lenders, private equity investors throughout the UK
We regularly give expert legal advice on leveraged and acquisition finance throughout all stages of a transaction to a wide range of clients, including:
established and alternative lenders
finance companies and business development companies
private equity houses
This expert advice includes financing for private acquisitions, asset purchases and takeovers.
Our acquisition finance and leveraged debt solicitors have all been recruited from top 100 UK law firms or from large international businesses. They each have more than 10 years post-qualifying experience.
We pride ourselves on delivering an excellent service for clients, but don’t just take our word for it.
Our solicitor’s assistance in the structuring of a new lending facility was greatly appreciated given the short deadline to completion. The team at Harper James responded promptly to get the deal over the line within our borrower’s timescale.
Leon Foxwell, Lending Manager Assured Property Finance
Harper James proved to be a great partner during our recent business transaction. The key benefit was having access to a very knowledgeable and capable resource who also understood the wider business impact.
Antony Chambers, Director Strategic Communications Services
Please leave us your details and we’ll contact you to discuss your situation and legal requirements. There’s no charge for your initial consultation, and no obligation to instruct us. We aim to respond to all messages received within 24 hours.
A national law firm
We mainly work remotely, so we can work with you wherever you are. But we can arrange face-to-face meeting at our offices or a location of your choosing.
Our commercial lawyers are based in or close to major cities across the UK, providing expert legal advice to clients both locally and nationally.