UK: What’s the Real Cost of Taking Debt Capital Raises into Your Own Hands?

Many searchers try to raise debt on their own, not because they want to become debt experts, but because it seems like better value than paying for a debt advisor. But is it really? Here’s the real cost of DIY debt raises: 📈Higher interest rates, fees, and lower quantum of debt Even small differences in interest margin and fees add up fast. On a £5m loan over 5 years, saving just 0.5% on the margin = £125k saved. Accepting the first offer may be convenient, but it's rarely the best available option. Less leverage means more equity required on Day 1, diluting your IRR and MOIC returns and needing deeper investor pockets. 🤝 No competitive tension = weaker terms and higher deal risk With only one lender at the table, you’re negotiating from a position of weakness. No fallback = pressure to accept worse terms (e.g. bullet vs. amortisation, covenant flexibility, etc…) or risk the deal falling through due to lack of alternative funding options. ⏱ Lost time and distracted focus Running your own debt process means less time on other valuable areas where only you can lead. Debt advisory is resource-intensive and technical. Without expert support, you become the bottleneck, and can delay the overall deal process. The truth? Using a debt advisor usually pays for itself many times over. At Leopard Advisory, we help UK-based searchers secure the right debt structure on the best terms, adapting private equity mid-market rigour to the search fund lower mid-market. ✔️ Independent: we work solely in the borrower’s interest ✔️ Strategic: support on structure, lender approach, and negotiation ✔️ Connected and market knowledge: over 100 active lender relationships ✔️ Efficient and low cost: secure, AI-powered processes to speed things up and reduce cost, but with human review and specialist expertise to ensure accuracy redacted 🔗 www.leopardadvisory.co.uk Raising debt in the UK? Let’s discuss your optimal financing strategy.