Corporate Finance Deal Done!

Our corporate finance team were approached by a local sole practitioner accountant to assist with a family buyout of a filling station. It was initially agreed that EQ would operate on a non-compete basis to ensure that trust was built with the incumbent accountant. The transaction was being sought to deal with a combination of health issues and short-term financing following the decision by a local bank to withdraw the funding for the business without any prior notice.

What type of work was involved?

After an initial meeting had taken place with the family, it was agreed that the business would be transferred to the children. Once a structure had been agreed regarding ownership, EQ’s specialists sought funding from another provider to ensure that there was finance in place to fund both the transaction but also to ensure there was appropriate finance in place to run the business post transfer. Our remit was also to ensure that no adverse tax consequences arose as part of the deal.

Why was the work undertaken?

The family wished to ensure, due to ill health, that an orderly transition of the business was secured, making it clear that the long-term stability of the business was of paramount importance. The bank’s decision, out of the blue, to withdraw funding, meant that work had to be dealt with as a matter of urgency and with absolute confidentiality.

What was the outcome?

Within 5 weeks of the initial approach, the deal was concluded with all matters dealt with including a full refinance, a restructure of the business and a solid trading structure created for the family’s future benefit. Most importantly, the transition of ownership was secured in order to allow the parents to retire without any further commitment to the ongoing business. EQ maintain an excellent relationship with the sole practitioner.

If you are looking for more information, advice or support with a disposal or any form of Corporate Finance (CF) work, please get in touch with our CF team on corporatefinance@eqaccountants.co.uk or call one of our offices today.