Key facts
- Lava Advisory Partners, a boutique M&A advisory firm founded in 2020, secured £8 million in debt financing.
- The funding came from specialist SME lender Beechbrook Capital.
- The firm intends to use the capital for hiring and office expansion.
- Lava Advisory Partners focuses on founder-led mid-market companies valued between £20m and £200m.
- The company reported a profit of nearly £1 million in its most recent annual report.
Boutique London-based M&A advisory firm Lava Advisory Partners has secured £8 million in debt financing from specialist lender Beechbrook Capital. Founded in 2020, the B Corp-certified firm plans to utilize the funds to expand its team and operations, aiming to capitalize on a surge in takeover activity.
Paul Joyce, a partner at Lava, cited market volatility over the past few years, including tariffs, interest rate hikes, and political changes, as factors contributing to pent-up demand now being unleashed. He noted that the firm's differentiated approach resonates with owner-managers and helps it compete with larger firms.
Lava Advisory Partners, which has approximately 20 staff, focuses on founder-led mid-market companies valued between £20 million and £200 million. The firm reported a profit of just under £1 million in its latest annual report. Joyce also highlighted significant interest from U.S. private equity firms in acquiring medium-sized UK businesses, seeing the UK as an attractive market for this capital.
He anticipates a strong period of deal-making activity following the summer holidays, with particular interest in the impact of the upcoming budget. Lava opted for debt financing to maintain employee ownership and avoid equity investment tied to a future sale.