UTB funds accountants’ accquistion
United Trust Bank’s Professional Lending department was recently asked to consider a proposal for a family-owned chartered accountancy firm. The company wanted to establish a wider presence and reduce competition in their area, so had come to an agreement to acquire a similar practice nearby. As this required a sizeable initial lump sum to secure the agreement, they preferred to seek partial funding rather than invest all of their hard-earned cash. Fortunately, United Trust Bank can offer loan facilities for such a purpose for terms of up to 3 years.
The team was provided with a comprehensive proposal from the introducing broker, so they could clearly see that both the borrowing firm and the firm being acquired were profitable, solvent and not heavily exposed to other debt. The team also reviewed the terms of the sale agreement, which were not onerous, and ensured the resulting merged firm had a high chance of success. On this basis UTB was happy to consider the 3 year term requested.
UTB was able to provide the client with a quick decision at a competitive rate. This enabled them to complete the acquisition in the proposed timeframe and a smooth transaction soon followed.
Loan advanced: £60,000
Term: 36 months