Brokers report increasing demand for business acquisition deals, despite lack of client knowledge on options
Nearly 60% of commercial finance brokers have reported an increase in client demand for funding to buy a business, while more than third say demand has remained consistent – new research from SME funding provider Asset Advantage has revealed.
In its latest commercial broker survey, 47% of brokers told Asset Advantage that they have seen a slight increase in acquisition demand, while 12% reported a significant increase. Just 3% of brokers told the funding provider they have seen a decrease, with consistent demand reported by 38% of brokers.
The growth in demand is in spite of the fact that nearly 50% of commercial brokers have identified struggles among clients in knowing how to get finance to buy a business. While some clients do not know how to secure finance for acquisitions, management buy-outs (MBOs) or buy-ins (MBIs), many are unaware of what is required in terms of information, documents and solid business plans to get transactions over the line.
Particularly for smaller transactions, brokers told Asset Advantage of issues around management information or the quality of financial projections. One broker said: “Customers sometimes think that as long as the business being acquired is trading ok (that is enough).” Another said: “Not so much with experienced operators (but) first time buyers need stronger business plans and projections.” The news of a jump in demand follows recent findings from the Office of National Statistics (ONS), which found that the number of completed mergers and acquisitions in Q2 2025 increased by more than 20% on the previous quarter. The total value of domestic mergers and acquisitions in the quarter totalled £3.4bn – an increase of £600m compared to Q1.
Gary Thompson, sales director at Asset Advantage, said: “Reports of increasing demand for business acquisition funding certainly mirrors what we are seeing on the ground. 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. Key to that is our ability to walk brokers and their clients through these more complex arrangements and provide
100% funding at the right levels to facilitate this type of transaction – particularly for smaller enterprises.
“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. 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.”