Is BIG LOANS a bank or NBFC?

No. BIG LOANS is a debt advisory and loan facilitation firm. We are not an RBI-regulated lender and do not lend on our own balance sheet.

What is the minimum and maximum ticket size BIG LOANS handles?

Our focus is ₹100 crore and above. We routinely arrange transactions up to several thousand crore through syndication.

Which industries does BIG LOANS serve?

BIG LOANS is industry-agnostic across manufacturing, real estate, infrastructure, healthcare, energy, IT/ITES, hospitality, NBFC, fintech and more.

What is the typical timeline from mandate to disbursement?

Typically 6–12 weeks for working capital, 10–16 weeks for term loans, and 12–24 weeks for syndicated project finance.

How does BIG LOANS charge its fees?

A modest engagement retainer plus a success fee linked to actual disbursement, governed by a written engagement letter.

Does BIG LOANS guarantee loan sanction?

No. Sanction is the sole prerogative of the regulated lender, based on its credit policy.

Service · Acquisition Finance

Acquisition finance, capital structured around the target.

Senior + mezzanine packages for strategic M&A, leveraged buyouts, and promoter consolidation. ₹250 Cr to ₹3,000 Cr+ across domestic and cross-border transactions, with banks for senior + AIFs for mezz.

Ticket: ₹250 – 3,000 Cr+Senior: 50–65%Mezz: 15–25%

Discuss your mandate → See the process

What is acquisition finance?

Acquisition finance is structured debt to fund the purchase of a company or business unit. The capital structure typically combines senior debt from banks (50–65% of purchase price), mezzanine from AIF credit funds (15–25%), and sponsor equity (20–30%). Indian acquisition finance is RBI-regulated under the master direction on acquisition financing, requires specific board approvals at the lender, and uses an Acquisition SPV structure to ringfence the transaction. Common use cases: strategic buyouts, PE-led LBOs, promoter buyouts of partners, cross-border acquisitions.

Section 01 — Overview

Capital sized to make the deal happen.

Most M&A transactions of ₹250 Cr+ in India are debt-funded. Pure equity acquisitions are rare because the sponsor wants leverage. The typical structure: an Acquisition SPV is created, into which sponsor equity is injected; the SPV raises senior + mezz debt; the combined capital pays for the target shares.

BIG LOANS structures both the senior bank syndicate and the mezz layer in parallel, manages target diligence with the lenders, and coordinates the closing — typically 12 to 20 weeks for a clean transaction, longer if the target is regulated or cross-border.

Senior debt 50–65% from bank syndicate, secured by target shares + business
Mezz 15–25% from AIF credit funds, subordinated to senior
Sponsor equity 20–30% — minimum required by RBI guidelines
Acquisition SPV structure to ringfence the deal from existing balance sheet
Cross-border structuring under FEMA / ODI (Overseas Direct Investment) rules

Typical ticket

₹250 – 3,000 Cr+

Senior debt

50 – 65%

Mezz debt

15 – 25%

Sponsor equity

20 – 30%

Tenor

5 – 8 years

Timeline

12 – 20 weeks

Section 02 — Use cases

When acquisition finance fits.

Six common situations where promoters and PE sponsors approach BIG LOANS for acquisition finance.

Strategic acquisition

A promoter acquires a competitor, supplier, or related business to gain scale, vertical integration, or geographic expansion.

PE-led leveraged buyout

PE sponsor acquires a target with 60–70% debt + 30–40% equity. Senior + mezz layered to maximise sponsor IRR.

Promoter buys out PE

Promoter buys back PE investor stake at exit. Funded by mortgage of promoter assets + acquisition debt against company cash flow.

Cross-border acquisition

Indian acquirer buys foreign target. Structured under ODI route, FEMA-compliant, often with overseas-currency senior debt.

Distressed asset acquisition

Buying out a distressed asset via NCLT/IBC, ARC, or one-time settlement. Specialist credit funds participate.

Carve-out acquisition

Buying a non-core business unit of a large group. Requires separation of cash flows, IT, employees — adds complexity.

Section 03 — At a glance

Acquisition capital structure example.

Tranche	Source	% of deal	Pricing
Senior debt	Bank syndicate	60%	MCLR + 150-300 bps
Mezzanine debt	AIF Cat-II credit fund	20%	13–17% IRR
Sponsor equity	PE fund or promoter	20%	Target IRR 22–30%
Blended cost	—	100%	~12% effective

Acquisition funding combines senior debt, mezzanine, and sponsor equity into the acquisition SPV.

Section 04 — Our process

How acquisition finance closes.

Acquisition finance is the most complex debt product to close. Senior + mezz + equity must align with target diligence, closing date, and regulatory approvals — typically 12 to 20 weeks.

Deal sizing + capital structure

Valuation of target, optimal D:E mix, senior vs mezz sizing, expected IRR for sponsor. Term sheet to bank + AIF in parallel.

Week 1 – 3

Senior lender outreach

IM + financial model to bank lead arranger. Plant visits, credit committee, indicative sanction.

Week 3 – 8

Mezz lender outreach

Parallel pitch to AIF credit funds with subordination intercreditor terms. Mezz commitment.

Week 4 – 10

Documentation

Acquisition SPV setup, senior loan agreement, mezz subscription agreement, intercreditor, share purchase agreement.

Week 10 – 16

Closing + drawdown

Conditions precedent satisfied (regulatory, target consents, security creation), funds drawn, purchase consideration paid.

Week 16 – 20

Section 05 — Documents

Acquisition documentation.

Documentation combines lender docs + transaction docs + corporate structuring + cross-border (if applicable). The heaviest of any debt product.

Sponsor / acquirer

Audited financials, projections, MOA/AOA, board resolutions, KYC, group exposure, prior acquisition track record.

Target due diligence

Target's audited financials (3-5 years), forecast, customer concentration, contingent liabilities, regulatory compliance.

Transaction documents

Share Purchase Agreement, escrow agreement, R&W insurance (if any), price adjustment mechanism.

SPV + structure

Acquisition SPV incorporation, equity injection mechanics, post-closing integration plan, exit waterfall.

Section 06 — Lender universe

Who funds acquisitions in India.

Senior debt: large private banks + foreign banks + select PSU banks. Mezz: AIF Cat-II credit funds. Cross-border: requires foreign-bank participation.

01Private Banks (HDFC, ICICI, Axis, Kotak)

02Foreign Banks (StanChart, HSBC, DBS, Citi)

03PSU Banks (SBI, BOB — for very large strategic deals)

04AIF Credit Funds (Edelweiss, Kotak, Brookfield, Apollo)

05Specialist M&A NBFCs

06Sovereign / Pension Funds (for ₹2,000 Cr+ mega deals)

Section 07 — FAQ

Acquisition finance — FAQs.

What is the minimum sponsor equity required?

RBI mandates a minimum 25% sponsor equity for acquisition financing. In practice, lenders prefer 30%+ for strategic acquisitions, and accept 20% for PE-led LBOs of stable cash-flow targets. Equity must come in before debt drawdown.

How long does an acquisition financing take?

Domestic deals: 12-16 weeks for clean transactions. Cross-border deals: 16-24 weeks due to ODI approvals, FEMA filings, target-country regulatory compliance. Distressed asset (NCLT) acquisitions: 6-12 weeks because the tribunal sets timelines.

Can the target's assets be charged for the loan?

Yes — this is the standard structure. Post-acquisition, the SPV merges with the target (or vice versa), and the target's assets become security for the acquisition debt. RBI permits this under specific conditions on merger and cash-flow assessment.

What is the difference between strategic and financial acquisition financing?

Strategic (corporate acquirer): typically lower leverage (50% debt) because the synergies pay for debt; long-term hold. Financial (PE acquirer): higher leverage (60-70%) to maximise sponsor IRR over a 4-6 year hold period before exit.

Can foreign currency debt fund a domestic acquisition?

Yes — through ECB route, but with restrictions. ECB cannot directly fund acquisition of an Indian company (RBI/FEMA prohibits). ECB can fund the acquiring entity's capex / refinance, freeing up internal cash flow for acquisition.

What happens if the deal falls through?

Loan agreements have "deal contingent" clauses — the loan only becomes effective on closing of the underlying transaction. Lender bears no risk if the deal collapses. Sponsor typically owes commitment fee for the lender's sunk effort.

Often combined with…

Have an M&A transaction?

Let's structure your acquisition finance.

Share the target brief and deal size. We respond with optimal capital structure, lender shortlist and timeline within one working day.

Discuss your mandate → mandates@bigloans.in

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