Ultimate Finance provided a £2m structured finance package to support a 75% management buy-in at a timber and builders merchants in Yorkshire.
The funding was arranged through introducer Reach Commercial Finance for a business with established customer relationships and steady demand.
The purchaser acquired 75%, with the remaining director retaining 25% and staying in the business.
The deal combined invoice finance, asset finance and a cashflow loan.
£1.5m was supplied via invoice finance to support day-to-day liquidity, £250,000 was secured against commercial vehicles, and £275,000 in a cashflow loan minimised deferred consideration and completed the acquisition requirements.
Adam Myers, regional director at Ultimate Finance, said: “Every MBI has two priorities: get the deal done and keep the business trading smoothly the next day.
“Structured Finance should allow for both to happen with minimal pain points.”
Ultimate Finance and Reach Commercial Finance worked together as a single team to deliver the facility on time.
The transaction avoided delays and complexity by using one lender, with coordinated legal and underwriting processes.
Myers added: “We looked at the full picture – receivables, vehicles and the cashflow gap – and built one joined up facility to minimise deferred consideration and protect day one liquidity.”
