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Selling the business to a third party with vendor finance. Is that possible?

The owner-manager of a transport and logistics company would like to retire but has no family members who want to take over the business. She has been approached by an experienced outside management team with an offer to buy her business. A new team with a long-term view, lots of drive and not backed by a private equity player. In general, the seller in these cases is asked to provide part of the acquisition financing in the form of a vendor loan. With a limit to banking facilities, this vendor loan could be substantial.

How did Caple help?

A loan via Caple can be the ideal partial solution to this problem. We often finance management buy-ins because there is a win / win situation. The old owner realises a higher amount of liquidity up front and reduces her risk whilst the new management has long-term financing. In all cases, part of the Caple loan needs to be applied to the new management’s growth plans.