- Client: UK-based trading company
- Loan Type: Secured loan to fund shareholder buyout
- Loan Amount: Circa £1 million
An established UK trading company approached Enness Global seeking finance to facilitate a shareholder buyout. One of the company’s founders wished to exit the business, while the remaining directors wanted to acquire full ownership and retain control over future decision-making. The company required a secured funding solution that could provide the capital needed for the transaction while preserving sufficient liquidity for ongoing operations.
The application presented a number of challenges. The business was operating under financial pressure, with legacy borrowing and balance sheet constraints reducing appetite among mainstream lenders. Despite these challenges, the company had a strong underlying trading proposition and a clear recovery strategy. The key requirement was to identify a lender comfortable with providing finance where part of the proceeds would facilitate a shareholder exit rather than being used solely for direct business investment.
Enness Global leveraged its network of specialist commercial lenders to identify a suitable funding partner and secured a facility of circa £1 million against company assets. The structure was designed to provide the capital required for the shareholder buyout while maintaining appropriate working capital for the business following completion.
Enness positioned the application around the company’s underlying trading strength, recovery prospects and proposed ownership structure. This allowed the lender to assess the transaction on its wider commercial merits rather than focusing solely on the company’s historic financial pressures. Flexible terms were subsequently structured to support the buyout while providing the remaining directors with greater control over the business.
The funding enabled the shareholder transition to proceed while supporting continuity of the underlying business. By consolidating ownership, the remaining directors were able to streamline decision-making and establish a clearer platform for future growth and financial recovery.
This case demonstrates how specialist commercial finance can support shareholder buyouts where conventional lenders may have limited appetite due to historic borrowing, balance sheet pressure or the intended use of funds. Enness Global’s experience in complex business finance and access to specialist lenders can help structure funding around the commercial circumstances of the transaction while considering the longer-term objectives of the business.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, affordability, business performance, asset suitability and lender criteria. Terms and outcomes will vary depending on individual circumstances and are not guaranteed.
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