Boutique London advisory firm lands £8m funding amid M&A frenzy
A boutique M&A advisory firm has landed £8m in fresh funding as it seeks to capitalise on a wave of takeover activity, City AM can reveal. London-based Lava Advisory Partners, which was founded in 2020, secured the debt finance from specialist SME lender Beechbrook Capital. The B Corp-certified firm said it would use the cash [...]
London-based boutique M&A advisory firm Lava Advisory Partners has secured £8 million in debt financing, capitalising on the surge in takeover activity, according to City AM. Established in 2020, the B Corp-certified company plans to use the funds to bolster its workforce and expand its office space. Lava's general partner, Paul Joyce, noted that market volatility in recent years has created pent-up demand, leading to increased business interest.
Joyce revealed that the firm has considered multiple funding options before selecting debt financing, enabling it to maintain its employee ownership and avoid equity investments tied to future sales or exits. The firm, currently employing around 20 people, caters to founder-led mid-market companies with valuations between £20 million and £200 million. In its latest annual report, Lava reported a profit of just under £1 million.
The London-based firm has witnessed significant interest from US private equity firms in acquiring medium-sized UK businesses. Joyce explained that the influx of capital from the US has led to a wider search for attractive businesses, making the UK an appealing destination for these transactions. With the return of employees from summer holidays, Joyce predicts another phase of robust activity, suggesting that the budget presented by Andy Burnham, the new Chancellor, could further stimulate the market.
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