Buy and Build Finance

A buy and build strategy is an acquisition-led growth approach where a business acquires an initial platform company and expands through further acquisitions. The aim is to increase scale, strengthen market position and create operational efficiencies by bringing complementary businesses together.

Buy and build typically begins with the acquisition of a platform business, which provides a foundation for future acquisitions. The initial acquisition, and subsequent bolt-on acquisitions, are often supported by a combination of debt and equity funding. Once the platform is in place, additional businesses are acquired and integrated into the group, helping to expand geographic reach, broaden capabilities, increase market share and support long-term growth.

Buy and build finance is typically used by established businesses, management teams and private equity sponsors looking to grow through acquisition. It is most suitable for organisations with a clear acquisition strategy, a strong platform business and the capability to identify, complete and integrate acquisitions successfully.

At Shawbrook, we support both management teams acquiring and growing businesses directly, and private equity sponsors investing in and scaling platform companies through bolt-on acquisitions.

Buy and build finance is typically structured to support both the initial platform acquisition and future bolt-on acquisitions. Funding may include committed acquisition facilities or follow-on capital for future acquisitions, helping businesses and private equity sponsors execute transactions efficiently.

At Shawbrook, buy and build finance can be provided through Corporate Leverage Finance or Unitranche facilities, with funding tailored to the business, acquisition strategy and growth plans.

A committed acquisition facility is a pre-approved funding line that gives businesses and private equity sponsors access to capital for future acquisitions as part of a buy and build strategy. Rather than arranging new funding for every transaction, businesses can draw on an agreed facility when suitable acquisition opportunities are identified. This can provide greater certainty of funding and make it easier to complete multiple bolt-on acquisitions as opportunities arise. 

At Shawbrook, committed acquisition facilities can be structured as part of a broader buy and build finance solution, tailored to the business, acquisition strategy and transaction requirements.

The lending criteria for buy and build finance will vary depending on the business, acquisition strategy and transaction structure. At Shawbrook, we typically assess the strength of the platform business, including its financial performance, cash flow profile and growth potential. We also consider the experience of the management team or sponsor, the acquisition pipeline, and the business's ability to successfully integrate and scale through future acquisitions.