Study finds uptick in clients seeking business acquisition funding

Core Insights - A recent study by Asset Advantage indicates a growing interest among clients in acquiring funding for business purchases, with nearly 60% of commercial finance brokers reporting an increase in demand [1][2] Group 1: Demand for Acquisition Funding - 47% of brokers have observed a modest rise in requests for acquisition funding, while 12% have seen a substantial increase; only 3% reported a decline in demand [2] - 38% of brokers noted that the level of demand for acquisition funding has remained steady [2] Group 2: Challenges in Securing Finance - 50% of brokers identified challenges faced by clients in securing finance for acquisitions [2] - Nearly half of the brokers indicated that clients often lack the necessary knowledge to navigate financing for acquisitions, management buy-outs (MBOs), and management buy-ins (MBIs) [3] - Clients frequently come unprepared with essential information, documentation, and comprehensive business plans required for financial transactions, particularly struggling with management information and financial projections for smaller deals [3] Group 3: Market Trends - The increase in demand for acquisition funding aligns with data from the UK's Office for National Statistics (ONS), which reported over a 20% increase in completed mergers and acquisitions in Q2 2025 compared to the previous quarter, with the value of domestic mergers and acquisitions reaching £3.4 billion, a £600 million increase from Q1 [4] Group 4: Industry Insights - Gary Thompson, sales director at Asset Advantage, emphasized the knowledge gap among clients regarding business acquisitions and the complexity involved, highlighting the need for funders to assist brokers in building their knowledge to better support clients [5]