Acquisition Finance in 2026: Lending Appetite, ABL vs Term Loans, and Structuring Your First Deal | Sean HighlandHost Charlie Tanner welcomes Sean Highland to the Acquisition Collective Podcast to discuss SME lending and acquisition finance. Sean, a chartered accountant with decades of experience structuring and restructuring debt, explains why lenders are currently nervous, highlights stress in the UK bridging market, and contrasts lender downside focus with buyer upside goals. They cover asset-based lending timelines and limits (debtors, plant, property LTV), term-loan expectations (deposits, rates, longer completion cycles), and why sub-£1m deals and management buy-ins can be hard to fund. Charlie shares lessons from his construction acquisitions and exits, emphasizing seller motivation, realistic valuation, forecasting, working-capital buffers, and avoiding excessive leverage. The episode also addresses deferred consideration, tax diligence, covenant risk, and how to present credible, risk-aware proposals to lenders.00:00 Podcast Welcome00:28 Meet Sean Highland02:02 Lending Market Nerves02:56 Property Lending Reality05:30 From Property to M&A06:41 Seller Motives and MBOs08:48 How Lenders Think11:45 Asset Based Lending Speed13:07 Deal Timelines and Rates15:51 Buying Property with Options18:49 Sub Million Lending Gap20:23 MBI Pushback and Focus24:10 Owner Life and Burnout29:05 Exits and Operator Incentives33:22 Forecasting as a Must37:00 Playing the Lender Game39:32 Post Acquisition Cash Buffer42:23 Over Leverage Horror Story43:37 Strike Kills Cashflow44:36 Why Deferred Consideration Exists47:13 Tax Due Diligence Traps49:59 Lender Mindset Exit Plans51:22 Leverage Limits And Reality54:37 What Lenders Need To See56:27 First Deal Without Experience01:00:05 Creative Funding And Angels01:02:55 Build Up With Small Acquisitions01:07:26 No Perfect Deal Add Value01:11:58 Broker Listings And Negotiation01:19:49 Goldfinch Finance And Ethics01:23:05 Credit Tightening Reality01:23:37 Asset Lending After 200801:25:55 Invoice Finance Pitfalls01:27:45 EBITDA Loans Explained01:30:17 Covenants Seasonality Risk01:32:41 Working Capital Nonnegotiable01:34:17 HoldCo Long Term Vision01:36:08 Sharing Equity With Sellers01:39:43 Broker Fees And Retainers01:52:15 No Money Down Myth01:53:49 Distressed Deals Brutal Truth01:57:56 Goldfinch Plans And Outlook01:59:34 Cautious Lending Market02:01:38 Closing Thoughts Farewell