Finance
market, there is no such thing as a blanket Agreement in Principle. The detailed assessments we conduct, combined with our understanding of our clients’ backgrounds, can provide reassurance to agents selling the target acquisition that funding is achievable. Navigating the transaction process, particularly during the legal due diligence stage after debt has been sanctioned, can be just as challenging. This is why appointing the right team with direct sector knowledge is absolutely vital to ensuring a smooth and successful outcome.
Key takeaways on the market Overall, while the market remains buoyant, there is an increasing supply pressure for potential buyers. There has been a decrease in first-time buyers, which could be due to the decrease in homes below 20 beds and lack of medium providers being able to acquire or upgrade their portfolios, thus disposing of their smaller assets. The finance market has continued its
cyclical nature, with funders changing policies, exiting, and returning. This makes acquiring debt always a challenge, before even getting into the detail of operation,
There is an increasing supply pressure for potential buyers
structure, affordability, regulatory, and quality of the asset. Over the past year, we have seen the Bank of England Base rate continue to fall, alongside contracting debt margins. Appetite remains strong to support
the sector, but heightened due diligence and lack of understanding by lenders can sometimes frustrate and protract credit decisions. The ability to make yourself fit-to-buy by fully understanding not only the sector, structure of debt, the available funders, and the terms that could be available to you will enable you to act quickly when offering on target. Proven operators can face unique challenges that may frustrate even experienced companies when securing debt arrangements. Meanwhile, the first-time buyer market continues to benefit from the growing support of alternative lenders outside the traditional high street banking system.
Jimmy Johns
Jimmy Johns has over 23 years’ experience within the financial services and banking sectors, with 15 of these years spent working in commercial banking. While working for specialist commercial finance broker Christie Finance, Jimmy has specialised in the healthcare sector, supporting a number of clients on various transactions, ranging from first-time buyers, large scale expansions, portfolio acquisitions, and management buyouts.
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February 2025
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