Brokers report surge in business acquisition funding demand

Demand for finance to fund business acquisitions is rising sharply, even as many clients struggle to understand their options, according to new research from SME funding provider Asset Advantage.

Nearly 60% of commercial finance brokers reported an increase in acquisition funding requests, while more than a third said demand had remained steady. Asset Advantage’s latest broker survey revealed that 47% of brokers had seen a slight increase in acquisition demand, with 12% noting a significant rise. Just 3% said they had witnessed a decrease, while 38% saw demand hold consistent.

The surge comes despite widespread client uncertainty around the funding process. Almost half of brokers surveyed said their clients lacked knowledge on how to finance acquisitions, management buy-outs (MBOs) or management buy-ins (MBIs). Brokers cited issues such as insufficient management information, weak financial projections, and limited awareness of the documentation required to secure deals.

One broker commented: “Customers sometimes think that as long as the business being acquired is trading ok [that is enough].” Another added: “Not so much with experienced operators [but] first-time buyers need stronger business plans and projections.”

The findings align with recent data from the Office for National Statistics (ONS), which reported a 20% increase in completed UK mergers and acquisitions in Q2 2025 compared with the previous quarter. The value of domestic deals rose by £600 million to £3.4 billion.

Asset Advantage, which provides asset finance and business loans of up to £1 million, often funds acquisitions, MBOs and MBIs, with loans starting at £75,000. The company said it is increasingly working with brokers to guide clients through these complex transactions.

“Whether it’s management teams looking to seize new opportunities, or business owners looking to hand over the reins, business acquisition funding continues to be an important part of our business.”

He added that the knowledge gap among clients remains a challenge, but one that funders must help address: “It is reliant on funders to use their experience and assist brokers in building their knowledge so they can confidently support clients. We prioritise using our team’s expertise and our Content Hub to support the market. It’s fantastic that this is not holding back brokers from proactively educating clients, nurturing transactions and, with the right funder, getting them over the line.”