Acquisition Finance Advisory
National Finance provides advisory and consultancy for business owners, management teams and investors who plan to buy a company, a stake in a company or a business asset. We help you shape a realistic funding plan, prepare a lender-ready information pack and coordinate with the banks, investors, valuers and legal counsel who assess and execute the transaction in the UAE, the GCC, Africa and the Philippines.
What is acquisition finance?
Acquisition finance is the funding used to pay for a business purchase. It usually combines the buyer’s own money with one or more forms of external capital. Lenders and investors focus on three questions: is the price reasonable, can the combined business repay the funding from its cash flow, and what security and protections are available if plans change.
Common funding sources
| Source | How it works | Points to consider |
|---|---|---|
| Buyer equity | Cash contributed by the buyer, shareholders or co-investors | Lenders normally expect a meaningful equity contribution |
| Senior term financing | A bank facility repaid over a fixed period, often secured on the target’s shares or assets | Covenants, repayment schedule and security package |
| Islamic acquisition finance | Sharia-compliant structures such as Murabaha, Ijara or Musharaka, depending on the assets and cash flows | Requires review by the institution’s Sharia committee |
| Seller financing or deferred consideration | Part of the price is paid later, sometimes linked to performance (earn-out) | Aligns buyer and seller; needs clear contract terms |
| Mezzanine or investor capital | Subordinated debt or equity from funds or strategic partners | Higher cost; may include ownership or control rights |
| Working capital facilities | Short-term lines that fund day-to-day operations after completion | Often arranged alongside the main acquisition facility |
What lenders usually ask for
- A clear acquisition rationale and a sources-and-uses table showing where every dirham comes from and goes
- Historical financial statements of the target, preferably audited, and management accounts for the current year
- Projections for the combined business, with realistic assumptions and downside scenarios
- Due diligence findings (financial, legal, tax and commercial) and the draft sale and purchase agreement
- Ownership and group structure after completion, and the proposed security package
- Know-your-customer information for the buyer, shareholders and ultimate beneficial owners
UAE and cross-border considerations
- Licensing and approvals: share transfers usually require approval from the relevant licensing authority or free zone. Regulated sectors, such as financial services, may require additional regulator consent.
- Competition rules: larger transactions may need to be assessed under UAE merger-control rules. Your legal counsel should confirm whether a filing is needed.
- Tax: UAE corporate tax and VAT treatment can affect the structure and the price. Obtain tax advice before signing.
- Cross-border deals: consider governing law, foreign ownership rules, currency exposure and how funds will move between countries.
How we work with you
- Discovery: the target, the proposed price, your contribution, timing and the deal stage.
- Funding options: a short paper comparing realistic structures, including conventional and Islamic routes.
- Information pack: sources and uses, financial summary, projections and the documents lenders typically request.
- Institution coordination: introductions and follow-up with banks, investors and advisers, who carry out their own assessment.
- Through to completion: tracking term sheets, conditions and document requests, so you can stay focused on the deal.
Common mistakes to avoid
- Agreeing a price before testing whether the business can support the funding
- Approaching lenders without a sources-and-uses table or due diligence results
- Underestimating the time needed for licensing approvals and lender credit committees
- Ignoring working capital needs in the months after completion
Related services: Project Finance & Investment Structuring · Working Capital · Islamic Corporate Finance Structures · Investor Readiness Guide
Frequently asked questions
How much of the price do I need to fund myself?
It depends on the target’s cash flow, the security available and the lender’s policy. Lenders rarely fund the full price, so plan for a meaningful equity contribution. We assess this in the first consultation.
Can I use the target company’s assets as security?
Often yes, subject to the lender’s requirements and applicable law. Share pledges and security over the target’s assets are common, but each case is reviewed individually.
How long does acquisition financing take?
Timing depends on due diligence, approvals and the lender’s credit process. Ask for a case-specific timetable rather than relying on general estimates.
Does National Finance provide the financing?
No. National Finance acts in an advisory and consultancy capacity only. We do not lend, invest, underwrite or guarantee financing. Decisions are made by licensed institutions and investors.
Book a free 20-minute finance readiness call
Tell us about the business you plan to acquire, the approximate value and your timeline. Book your free readiness call →
Educational information only. A consultation is not an offer of financing, investment advice, or a legal, tax or Sharia opinion. National Finance does not guarantee financing or completion of a proposed acquisition; decisions rest with licensed institutions. Information checked October 2026.