A bolt-on acquisition is a purchase by a business that's already trading, so lenders look at the two businesses together. A buy-and-build strategy goes further: a platform business, then a series of bolt-ons, often funded with a facility that can be drawn for each new deal.
Bolt-on acquisitions
- The combined business is assessed: lenders look at the profits of both firms, and the costs of bringing them together.
- Your existing lender matters. Many facilities restrict acquisitions, so you may need your current lender's consent, a change to the facility, or a refinance.
- Integration costs count: budget for the time and money it takes to combine the two businesses.
Buy-and-build
- The platform deal is funded with the usual stack. See How is buying a business usually funded? The capital stack.
- A revolving or acquisition facility can then fund the bolt-ons, so you don't start from scratch each time.
- Lenders want proof the model works before funding deal two: the platform performing to plan, and integration under control.
Plan for the pipeline
If you expect to make more acquisitions, negotiate room for them in the first facility, rather than finding it restricts you later. See Can I fund further acquisitions later?.
For more, read Funding a bolt-on acquisition and Funding a buy-and-build.
Last reviewed: 8 October 2026