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Growth by acquisition. How do you finance that?

A software company near Reading wants make two acquisitions, one based in the UK, and one in Germany. The company’s bank can increase its facilities based on the collateral value of the domestic business and a limited amount of additional leveraged finance. In this case, however, the company’s bank could not fully finance the total consideration.

How did Caple help?

Caple helped to arrange an eight year unsecured loan on top of the existing banking facilities at the UK level. In most instances after acquisition the working capital of the new group also needs to be strengthened. The Caple loan therefore included an element which made this possible.