Case Study

Purchasing a business from receivership

The problem with some lenders is that they can’t be flexible in their criteria, as was the case for this client.

They had a long-established business in the manufacture and sales of motorhomes and equine vehicles, successfully trading for over 15 years.

They purchased an additional, profitable business that would provide a new arm to their growing group of businesses.

The purchase of the business order book and assets was through a pre-pack, and they now had the opportunity to purchase the trading premises for £1.67m from the receivers.

Unfortunately, their own bank wouldn’t help because they were classing it as a new business. The bank’s hands were tied, so they were referred to us. 

We presented two solutions:

  1. A bridging loan
  2. deal to the new company with cross-company guarantees from the existing company.  A loan of £1.1m

The second option was agreed on, and the client was able to make the purchase and continue growing their businesses.

They were also able to keep the existing staff and management team within the business they purchased.

The key to this case was taking the time to get to know the client’s business and gathering all the information. A good relationship with the lender helped things run smoothly too!