Sample Funding Proposal
Explore a worked acquisition-funding example and see how ValuFund brings together the funding requirement, business information, Sources & Uses, debt-service capacity, lender considerations and report output.
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Worked example
Northgate Acquisition — fictional example
Northgate Engineering Ltd · Manufacturing — Precision Engineering
Proposal type
Acquisition Funding
Headline funding request
£3,500,000
Total uses
£6,700,000
Total sources
£6,700,000
Total buyer / sponsor contribution
£1,700,000
Sources & uses
Balanced
Currency
GBP
Senior DSCR (Y1, base)
1.17x
All figures are calculated live from the canonical sample using ValuFund's shared calculation engine — the same numbers you see in Step 7 and the generated report.
Senior debt service coverage
CFADS (Cash Flow Available for Debt Service) is EBITDA less an illustrative corporation-tax proxy, maintenance capex and working-capital movement. Senior Debt Service is the combined service of the term loan, asset finance and invoice finance facilities. Senior DSCR is CFADS ÷ Senior Debt Service. Subordinated vendor / deferred consideration is excluded from Senior Debt Service.
| (GBP, unless stated) | FY2026 | FY2027 | FY2028 |
|---|---|---|---|
| CFADS | £1,450,000 | £1,637,500 | £1,825,000 |
| Senior Debt Service | £1,234,500 | £1,160,750 | £1,087,000 |
| Senior DSCR | 1.17x | 1.41x | 1.68x |
| Downside Senior DSCR | 1.00x | 1.21x | 1.45x |
Downside case applies a 10% EBITDA shock and a +1 percentage-point interest-rate shock.
What this proposal demonstrates
Acquisition funding structure
A share purchase of Northgate Engineering Ltd for £5,000,000, funded by a senior term loan (£3,500,000), asset finance (£600,000), invoice finance (£500,000), subordinated vendor / deferred consideration (£400,000), existing cash (£200,000) and buyer equity (the balancing £1,500,000). Total Uses and Sources both reconcile to £6,700,000.
Subordinated vendor / deferred consideration
£400,000 of deferred consideration is contractually subordinated to the senior facilities, payable only from available free cash flow after senior debt service, and therefore excluded from Senior Debt Service and Senior DSCR.
Senior security package
All-assets debentures over the acquisition SPV and the target trading company, plus a share charge over the target — subject to final lender documentation and agreed priority.
Rationale & narrative sections
A strategic acquisition rationale, executive summary, key risks and mitigants, and lender considerations — each lender-oriented and fully editable by the user, with optional AI drafting.
Print-ready proposal output
Step 7 generates a professional 13-page A4 proposal — cover, financial summary, funding structure, Sources & Uses, DSCR, sensitivity, security, covenants, rationale, risks and disclaimer — via the browser's print-to-PDF. No watermark, no account.
One engine, one set of numbers
The wizard, on-screen preview and generated report all reconcile exactly, because every figure is produced by ValuFund's single deterministic calculation engine.
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