- Client: UK-based financial services firm
- Facility: Circa £500k
- Purpose: Share acquisition and working capital
- Timeframe: One week
Enness was approached by a UK-based financial services firm whose shareholder was looking to acquire additional shares in the business. The transaction also required an element of working capital, making it important to structure the borrowing around both requirements.
The main challenge was the timeframe. The client needed the funding in place within a week, while the company also had background issues that required careful consideration by any prospective lender. This meant that finding a lender was only part of the process; the lender also needed to be comfortable with the company’s circumstances and able to move quickly enough to meet the deadline.
Enness reviewed the requirement and approached lenders that could consider the transaction within the required timeframe. The structure was designed to accommodate the different uses of the funds, with the majority being allocated towards the share buyback and the balance providing additional working capital for the business.
Following discussions with the lender and the completion of the necessary due diligence, the facility was implemented and drawn within one week. This allowed the shareholder to proceed with the planned share acquisition while also providing the company with additional liquidity.
The case demonstrates the importance of having a financing structure that reflects the full circumstances of a business, particularly where funds are required for more than one purpose and there is a tight completion deadline. By understanding the requirement as a whole and identifying a lender comfortable with the background circumstances, Enness was able to secure a solution that met the client’s objectives.
For businesses seeking finance for share acquisitions, shareholder transactions or additional working capital, corporate finance can provide a range of potential solutions depending on the circumstances. Speak to a mortgage specialist to discuss your requirements.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal or tax advice. Finance is subject to status, underwriting and lender criteria. Terms and availability will vary depending on individual circumstances, business performance and the proposed transaction.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.
Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
