Acquisition Finance in Nigeria: Debt, Equity and Funding Readiness

Funding to buy a business must cover more than the purchase price. A buyer may also need money for transaction costs, working capital, integration and necessary investment after completion. A realistic funding plan shows the full requirement and the conditions attached to each source.

Wigmore Trading welcomes acquisition-finance planning and coordination enquiries in Nigeria. We can discuss the commercial brief and appropriate specialist support. Wigmore is not promising a business acquisition loan, arranging a guaranteed facility or committing investor funds through this page.

Establish the total funding requirement

Separate consideration paid to the seller, debt treatment, fees, taxes, deposits, working capital and post-acquisition expenditure. Explain which amounts are estimated and which are supported by agreed terms. Identify a sensible contingency for uncertainty.

Distinguish discussions from commitments

A funding indication is not necessarily a binding offer. Identify approval, diligence, documentation and drawdown conditions. Do not assume financing is available because it balances an acquisition model.

For private equity, family office or institutional participation, clarify the investor’s mandate, decision process and expected rights. Any capital-raising activity requiring a regulated professional must be scoped with an appropriately authorised provider.

Test debt-service capacity

Use a properly reviewed financial model and credible operating assumptions. Consider downside demand, cash conversion, capital expenditure, interest cost and currency exposure. Leveraged acquisition finance can increase pressure on the business; it is not a shortcut to an acquisition without risk or capital.

Qualified advisers should assess security, guarantees, priority and the effects of the proposed structure. A facility suitable for one company is not automatically suitable for another.

Prepare a controlled information pack

Providers may require buyer identity, ownership, financial records, business information and a transaction summary through an appropriate review process. Establish who receives the information, why it is needed and how it is protected.

Do not send bank credentials, private identity files or confidential target records through an initial sales enquiry. Start with a non-confidential description and agree the scope first.

Coordinate finance and completion

Align funding conditions with purchase documents, approvals and the planned completion date. Consider what happens if diligence changes the price or a condition cannot be satisfied. Seller finance and deferred consideration need legal and tax review, not only a repayment spreadsheet.

Confirm the relevant SEC registration where a proposed provider’s activity requires it. A commercial introduction does not establish authorisation or a financing commitment.

Can Wigmore guarantee acquisition funding?

No. Funding depends on provider assessment, project facts and agreed terms.

What should I send?

Provide the business sector, size range, stake sought, buyer contribution, transaction stage and target date. The team can discuss readiness and the appropriate next steps.

Before approaching providers, prepare an acquisition financial model that separates confirmed funding from assumptions.

Related planning guides

• Minority and Majority Acquisitions in Nigeria: Equity and Shareholder Liquidity
• Search Funds and Independent Sponsors in Nigeria: Acquisition Planning
• M&A Tax and Acquisition Accounting in Nigeria: Planning the Workstreams
• M&A Completion Terms in Nigeria: Price Adjustments, Earn-Outs and Protection
• M&A Financial Modelling in Nigeria: Acquisition Scenarios and Deal Value
• Financial Due Diligence and Quality of Earnings in Nigeria

Prepared 3 November 2026. General process guidance does not establish a professional opinion, regulatory approval, live opportunity, finance offer or bound insurance cover. Actual providers and terms require confirmation.