COLOSSAL FINANCE ─── CAPABILITIES / BUSINESS ACQUISITION FUNDING
─── BUSINESS ACQUISITION FUNDING · TYPICALLY GOLD
Buying a business is the easy part.Financing it correctly is the difference.
Acquisition funding is where most capital decisions go wrong — not because the deal was bad, but because the structure was. We design the architecture before we approach lenders.
─── WHEN THIS MATTERS
You might be here because…
A competitor has come to market and you have 60 days to close.
Speed matters, but not at the expense of structure. The wrong facility structure during an acquisition can cripple cashflow for the next three years. We've structured facilities under tight deadlines before — let's talk about your timeline.
You've identified a target but you don't know how to structure the deal.
Vendor finance, senior debt, mezzanine, equity contribution, asset-backed layering — the right mix depends on the target, the operator, and the post-acquisition cashflow profile. We model it before we approach the market.
You're executing a buy-and-build strategy and need a capital partner.
Roll-up strategies require a different capital architecture than one-off acquisitions. Cross-collateralised group structures, ongoing acquisition facilities, balance sheet optimisation across multiple targets — this is where Colossal Gold engages from day one.
─── HOW WE STRUCTURE IT
Structure first. Lender second.
Most acquisition financing fails at the structure layer, not the approval layer. Before we ever approach a lender, we design the deal architecture: facility sizing, security, covenants, equity contribution, vendor finance integration, cross-company guarantees, capital stack.
Capital stack design
We typically layer senior debt, asset-backed facilities, and vendor finance to optimise the equity contribution. The right mix depends on the target's asset base, cashflow profile, and post-acquisition integration plan.
Covenant positioning
Covenants are negotiable, but only if you understand the lender's perspective. We anticipate covenant pressure before it becomes a problem — and structure for the 18-month outlook, not just day one.
Equity contribution optimisation
How much equity is enough? Less than you'd think — if the structure is right. We've executed acquisitions with as little as 7% equity contribution by layering vendor finance, asset-backed facilities, and senior debt intelligently.
─── THE LENDER LANDSCAPE
We know which lenders show up for acquisitions.
Acquisition financing is not a commodity product. Lender appetite varies dramatically by sector, deal size, and equity contribution. We maintain relationships across four lender categories — each with distinct appetites.
Tier 1 Major Banks
Best for: Larger acquisitions with strong cashflow and recognised brands. Slower turnaround. Conservative covenants. Competitive pricing.
Second-Tier & Challenger Banks
Best for: Mid-market acquisitions, sector-specific appetite, faster decisions. Slightly higher pricing, more flexible structures.
Non-Bank Lenders
Best for: Speed, complex structures, smaller equity contributions. Higher cost of capital, more flexible covenants.
Private Credit & Family Office
Best for: Larger deals, mezzanine layering, special situations. Bespoke terms, longer commitment cycles.
─── CASE STUDY
FNQ Concrete Pumping Acquisition.
A non-asset-backed sponsor with a newly-established acquisition entity (day-one ABN) had identified one of Far North Queensland's largest concrete pumping operators as an acquisition target. Equity contribution was 7%. Conventional bank financing was not viable.
We arranged $1.6M in senior debt funding via a non-bank lender with sector appetite, and negotiated vendor finance directly with the seller to bridge the remaining gap. The asset-backed structure used the operating fleet as primary security.
The acquisition closed on time. The business has since expanded into adjacent markets and the sponsor is currently in discussions with us on the next acquisition target.
─── WHAT IT LOOKS LIKE WITH US
Our acquisition engagement process.
Strategic conversation
We meet with you, your accountant, and any other advisors. We understand the target, the strategic logic, and your operating constraints. No commitment, no fee.
Capital architecture
We model the capital stack across multiple structures. We test sensitivities against post-acquisition cashflow. We identify the lender categories most likely to engage.
Lender engagement
We approach a curated short-list of lenders with a prepared credit narrative. We manage the process from term sheet through to credit approval, negotiating on your behalf throughout.
Completion and ongoing partnership
We coordinate completion alongside your legal and accounting team. Once the facility is in place, we stay in the relationship — annual reviews, refinance planning, next-acquisition readiness.
Considering an acquisition?
The earlier we engage, the better the structure. Start a conversation.