CUSTOMER CHALLENGES

This business was owned by two families, one of which wanted to exit the business to set up a separate venture. The remaining family did not have access to sufficient funds to pay out the exiting family, and the company was also not in a position to provide these funds. The challenge was to find a viable route to buy out the exiting shareholders.

OLDFIELD'S SOLUTION

Oldfield carried out a share valuation and determined a route to enable the exiting shareholders to be paid out with a combination of company funds and a commercial property held by the shareholders. This was an ideal solution that worked for the exiting shareholders whilst not burdening the business and remaining shareholders with unviable cash outlay, enabling the cash element to be paid in stages rather than a single cash instalment and avoiding negatively impacting the company’s credit rating.

RESULTS

The results speak for themselves: the two families were able to go their separate ways on mutually beneficial terms, whilst minimising the burden on the continuing shareholders by utilising company funds and non-cash assets in a staged approach that prevented negatively impacting the company’s cash flow and credit rating.

Brief Overview

INDUSTRY
Construction

LOCATION
United Kingdom

KEY CHALLENGES
One group of Shareholders wanted to exit the business to set up a separate venture. A solution was needed that made this viable without imposing unacceptable demands on company cash flow.

ONE SOLUTION
A creative solution that enabled a combination of company funds and a commercial property to achieve the desired outcome on mutually beneficial terms.

RESULTS
A positive outcome for the exiting shareholders whilst limiting the impact on cash flow and credit rating for the company.

DISCOVER MORE ABOUT OUR HOLDING COMPANY BUYOUT SOLUTION HERE