A recent study by Asset Advantage has revealed a growth in the number of clients seeking funding to acquire businesses, according to feedback from commercial finance brokers.
The research indicates that client interest in obtaining finance for business purchases is growing, with nearly 60% of brokers observing an increase in such demand.
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The Asset Advantage survey found that 47% of participating commercial brokers have witnessed a modest rise in requests for acquisition funding while 12% have encountered a substantial increase.
A mere 3% of brokers have seen a decline in demand, and 38% report that the level of demand has remained steady.
Despite the growing interest in business acquisitions, 50% of brokers have identified challenges faced by clients in the process of securing finance.
Nearly half of the brokers surveyed noted that clients often lack the necessary knowledge to navigate the financing of acquisitions, management buy-outs (MBOs), and management buy-ins (MBIs).
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By GlobalDataClients are also frequently unprepared with the essential information, documentation, and comprehensive business plans required to finalise such financial transactions.
Brokers particularly highlighted difficulties with management information and financial projections for smaller deals.
This surge in demand is consistent with recent data from the UK’s Office for National Statistics (ONS), which reported a more than 20% increase in completed mergers and acquisitions in Q2 2025, compared to the previous quarter.
The value of domestic mergers and acquisitions during this period was £3.4bn, showing a £600m increase from the first quarter.
Asset Advantage sales director Gary Thompson said: “Our survey tells us that there is a knowledge gap among some clients when it comes to business acquisitions.
“It’s no secret that this can be more complex and not always commonplace for every broker. It is reliant on funders to use their experience and assist brokers in building their knowledge so they can confidently support clients.”
Asset Advantage had launched a broker survey in June to shed light on key themes and the current and future landscape of small and medium-sized enterprise (SME) funding needs for brokers and businesses alike.
