Business Acquisition Loan To A Growing Security Systems Company Over A 5-Year Term

"With Asset Advantage, you have the confidence and certainty that if they say they’ll do it, they’ll do it.”

Thank you to Michael Davis from Primary Asset Finance for working with us on this deal.

This growing security services group spotted an opportunity to acquire a competitor in the local area. The business designs, installs and maintains a range of Fire Protection, Intruder Alarm, Camera and CCTV, Access Control and Door Entry Systems for a diverse customer base, and provides essential regular maintenance services to businesses where there is a legal requirement to keep such accessories well maintained.

The driver of the acquisition was to benefit from the steady flow of core income from the maintenance contracts from the competitor business.

This entrepreneurial company is run by a young, energetic owner. He worked in the provision of security sector as an employee for some time before buying his own business. When he came to Mike, he had already completed six acquisitions, which were all successfully subsumed within his business. His strategy is to build a strong, profitable group of companies before considering his exit planning, which he aims to complete in 10 years.

£230,000 Business Acquisition Loan over a 5-year term.

Unexpected Legal delays
Despite receiving a swift approval, this deal was subject to a number of unexpected legal delays on the vendor and buyers’ side. Mike Davis said: “I was impressed with the Asset Advantage Payout Team, and Philip Knight Credit & Risk Director who were both very patient with the process, and extended the approval period as necessary.”

Mike Davis said: “I sent this deal straight to Asset Advantage as they are known to be good with the storybook lend. They are a good mirror for the way Primary Asset Finance do business, and we know that our clients will be looked after. With Asset Advantage, you also have the confidence and certainty that if they say they’ll do it, they’ll do it.”

Insight from Philip Knight, Credit & Risk Director: "This was a comprehensive and well researched proposal from a highly professional broker with whom we have a long standing and mutually trustworthy relationship underpinned by a good volume of new business."