The owner of a specialised construction company wants to sell his company to the existing management which includes some of his children. Even though this type of transaction resembles a third-party sale, the background is more delicate. It begins with a reasonable valuation of the business, accepted by all parties. The owner would on the one hand like to realise (part of) the value which has been created. On the other hand he would not want to burden the next generation with an excessive financial obligation and wants to leave room to continue growing the business in the future.
How did Caple help?
At Caple we have a lot of experience with this type of transaction. We usually add a long-term loan to the banking facilities, often in combination with a smaller vendor loan. The loan is based on the future cash generation of the business and is tailored to complement both the banking facilities and the vendor loan. Caple is happy to support generation change within a family enabling long-term growth of the family business.