Loan for Business Acquisition – What Options Are Available?

Typical Types of Loans for Business Acquisitions

Investment Loans from Your Primary Bank

The classic option: a loan from your primary or business bank. Prerequisite: a viable business model and reliable financial metrics of the target company.

KfW Promotional Loans

Suitable for successors, start-ups, and acquirers. Advantages include:

• Low interest rates

• Grace period without repayments

• Partial liability exemptions

Seller Loans as Supplemental Financing

In many cases, the seller agrees to defer part of the purchase price as a loan—either interest-free or at a low interest rate.

Subordinated Loans / Mezzanine Financing

Especially useful in financings with a low equity ratio, these loans can help strengthen the equity base.

What Does the Bank Assess When Granting a Loan?

• Profitability of the target company

• Your expertise and industry experience

• Equity ratio

• Financing structure (equity-to-debt ratio)

• Collateral and, if applicable, guarantees

Prepare thoroughly—with the help of our Business Financing Calculator, you can calculate initial key figures and enter discussions in a structured manner.

Where Can You Find Suitable Financing Partners?

• Primary bank

• Mid-sized banks

• Promotional banks (e.g., KfW, LfA, NRW.BANK)

• Guarantee banks

• Private investors (e.g., family offices)

Conclusion

A loan for a business acquisition is not a one-size-fits-all solution but rather a custom-tailored package. The better prepared you are, the higher your chances of securing successful financing.

Start now with our Business Acquisition Financing Calculator and plan your financing based on realistic figures.