Professional loan funds accountants’ acquisition
A merger or acquisition can be a challenging process for any business. However, if completed successfully, it can also be extremely beneficial. A good opportunity might bring in high-quality staff and extend industry or technical knowledge. It might also provide access to a wider customer base and more diverse sources of income.
United Trust Bank’s Professional lending team was recently approached by one of our key broker introducers to discuss funding an acquisition for a well-established chartered accountancy firm. The partners intended to acquire a similar business in the local area and needed to arrange a considerable sum of cash in order to facilitate the purchase and complete the process in the timeframe required.
The purchase appeared to be a positive move, as aside from the obvious benefit of teaming up with a local competitor, the firm being acquired was very well-managed, it was profitable and the economies of scale would clearly improve the new merged firms’ trading performance and cash flows. The team was also able to establish from the sale agreement provided that a good price had been negotiated and the terms of the acquisition were reasonable.
Thanks to the comprehensive information provided by the introducer, United Trust Bank was able to support a sizeable portion of the initial funding requirement with the funds released a few days prior to the completion of the acquisition, as requested by the customer.
Neil Simpson, Assistant Credit Manager – Professional Loans, commented:
“UTB’s Professional Loans are often employed for a far more diverse range of purposes than simply settling VAT, corporation tax or partner tax bills. Whether it’s a cash injection for a legal firm to overcome payment lock-up, money for a GP partnership to invest in improving their surgery, or cash to facilitate a merger or acquisition; we work closely with our broker partners to quickly provide professional firms with the funds they need to grow.”
Term: 36 months