Management Buy Out Finance For Funeral Director

£750k Management Buy Out Finance For Funeral Director

Area
London
Capital Raised
£750k

The Scenario

We were recently approached by the owners of a funeral director who were looking to buy out one of the existing Directors.

The Director in question was looking to retire: one of the most common scenarios we see for Management Buyout Finance.

The challenge that many companies have when buying out the ownership of a business, is raising enough cash to do so.

While they may have healthy profits and business forecasts, it’s rare that a business has large volumes of cash on hand to buy out an owner.

The Solution

In this case, the most significant asset the funeral directors owned was the commercial property itself, which was currently unencumbered (no existing mortgage on the property).

We spoke to a number of lenders – from high street banks to specialist business finance lenders – to ascertain the best route for a commercial mortgage raised against the property (also referred to as a commercial term loan).

Valued at £1m, the £750k loan required would mean a 75% loan to value facility, which was low enough to keep interest rates competitive.

In this case, we ultimately placed the loan with a main stream bank, resulting in an interest rate just 3% above the BoE base rate – extremely competitive for a large commercial mortgage on a high value property where the funds are being used for a management buyout (a fairly unorthodox use of funds).

At Clifton Private Finance, we always explore the most cost-effective solution for your finance needs, which often isn’t the most obvious or ‘traditional’ method of raising funds.

Max Mallinson

Finance Broker CeMAP

Cardiff

0117 332 5977

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

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Jonathan Moffatt

Head of Business Finance

Cardiff

0203 880 8890

Do you need help sourcing your own business finance?

I have extensive experience securing finance for a wide range of businesses. Book a free telephone consultation with me at a time to suit you. 

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Alex Morris

Private Client Adviser

Bristol

0117 332 5061

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I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.

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Scott Dutfield

Finance Broker

Cardiff

0117 959 5094

Are you looking for a similar type of property finance?

As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you

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Carly Cheeseman

Head of International

Bristol

0117 457 9922

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Nick Kerley

Finance Broker

Cardiff

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Louis Levine

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Bristol

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Sam Baker

Finance Broker

Cardiff

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As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.

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Fergus Allen

Senior Finance Broker

Cardiff

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

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Jacob Phipps

Finance Broker

Bristol

(+44) 0117 959 5094

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I specialize in helping international clients source residential and investment property finance for UK property. Book a free telephone consultation with me at a time to suit you.

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Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need. customDatabaseField-8455

Mathew Phillips

Senior Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Book a free telephone consultation with me at a time to suit you.

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Alex Chambers

Senior Private Client Adviser

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Book a telephone consultation at a time that suits you.

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Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance?

I have extensive experience finding residential and investment property finance for UK and international clients. Book a free telephone consultation with me at a time to suit you.

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Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar?

I am a bridging finance specialist at Clifton Private Finance. I can find a quick, cost-effective solution for the funding you're looking for. Book a free telephone consultation with me at a time to suit you.

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