Two clients were offered the opportunity to acquire the business they were working in. We undertook feasibility studies to assess the proposition and were able to suggest a better package for the acquisition which was subsequently agreed.
The business was operating from a rundown rented building and the clients were anxious to find new premises. They asked about buying suitable premises and we therefore undertook a further feasibility study which clearly showed the benefits of owning a property rather than renting one. The search for the new property took over a year, and included a couple of false starts, but they eventually found a suitable property in Allerton, Liverpool.
We negotiated the purchase price and arranged the required funding for the purchase of the property in the name of their newly formed limited company. As the building required change of use planning consent and refurbishment it was necessary to use bridging finance for the acquisition in the first instance. However, as we had also worked with the clients to formulate a detailed and robust five year Business Plan with full financial projections, we were able to negotiate a competitive deal with six months retained interest and the option to extend the facility for a further six months in the event of an overrun on the refurbishment works.
Due to the pandemic the refurbishment did indeed overrun and the loan was extended automatically. The building is now fully refurbished, we have arranged for the refinancing of the bridging loan and the business is growing organically; which should allow the loan to be repaid earlier than originally planned – or for another building to be purchased should the directors decide to expand further! Lastly, we arranged for the clients to receive independent business protection advice to make sure that their business and their families are adequately protected for the future.