An experienced operator had spent many years working in the same industry before identifying an opportunity to acquire an established franchise business.
The purchaser understood the operation and had carried out detailed due diligence on the business before proceeding.
Line Capital considered both the performance of the business being acquired and the experience of the purchaser, alongside the proposed contribution and lending structure.
A senior employee was offered the opportunity to purchase the established business they had been helping to run.
The purchaser knew the operation well, but the transaction required a funding structure that combined Line Capital lending with support from the vendor.
Line Capital reviewed the target business’s trading history, financial position and receivables alongside the purchaser’s wider position when assessing the acquisition.
A purchaser had agreed to acquire an established hospitality operation through a newly created purchasing entity.
Because the new entity had no trading history of its own, the assessment focused heavily on the existing business being acquired – including its historical trading performance and ability to support the proposed lending.
The purchasing parties and the proposed security structure were considered alongside the business itself.
An experienced operator had spent many years working in the same industry and wanted to take the next step into business ownership.
An opportunity arose to purchase an established branch of a nationwide franchise.
The purchaser knew the industry well and had taken the time to thoroughly assess the business before proceeding.
Rather than starting a new operation from scratch, the acquisition provided an opportunity to take ownership of an established trading business with an existing operating history.
Industry experience was an important part of the picture, but the acquisition still needed to work financially.
Line Capital considered the performance of the business being acquired, its ability to support the proposed lending and the wider structure of the purchase.
The purchaser was also contributing a meaningful amount of their own capital towards the transaction.
Together, that gave the lending team a clearer view of both the business being purchased and the person who would be taking it forward.
Line Capital provided a $250,000 AcquisitionLine facility over 48 months.
The lending formed part of the funding structure that enabled the purchaser to move from working in the industry to owning an established business within it.
Business acquisitions can be structured in different ways.
The amount being purchased, the contribution from the buyer, whether the acquisition is being made through a new or existing company, the strength of the business being acquired and the security available can all affect the lending structure.
For individuals and established businesses looking to purchase an existing, proven business.
AcquisitionLine can support business purchases, management buy-outs, ownership succession and growth through acquisition.
Maximum lending varies by borrower profile and acquisition structure, with lending limits of up to $500,000 in some circumstances.
Terms of 6–60 months, with some acquisition structures subject to shorter maximum terms.
You don’t need to work that out before talking to us.
Tell us about the business you’re looking to purchase, the agreed or proposed purchase price, your experience and how you’re thinking about funding the transaction.
We can look at the acquisition, the wider context and whether AcquisitionLine may fit.
Security can form part of an acquisition structure, but it doesn’t replace the need for the business itself to stack up.
We want to understand the business being purchased – its trading history, profitability, cash generation and ability to support the proposed lending.
We also look at who is buying it, the experience they bring, how the transaction is being structured and what capital or security is available.
An acquisition with a strong asset position but weak serviceability is different from one where the underlying business can sustainably generate the cash required to meet its commitments.
That broader picture helps us understand the transaction rather than looking at the purchase price alone.
"Better outcomes start with better questions."
Our lending team works with New Zealand businesses across a broad range of funding needs and business situations. The team brings practical lending experience to assessing not just the numbers, but the context behind a funding request.
Tell us about the business you’re considering, your experience and where you are in the purchase process. We’ll ask the questions that help us understand the business being acquired, the transaction structure and the funding requirement.
The information on this page is general in nature and does not take into account the specific circumstances of your business. Any lending is subject to Line Capital's lending criteria, assessment and applicable terms and conditions.