Partial MBO - Minority Buyout from a Retiring Co-Founder
£350,000 · 4 years · 8.50% fixed. A two-partner accountancy and advisory firm needed to buy out one retiring partner's 50% shareholding.
The Client
Two-partner accountancy and advisory firm
The Challenge
A two-partner accountancy and advisory firm needed to buy out one retiring partner's 50% shareholding. The remaining partner did not want to sell the business outright and could not fund the buyout personally. The retiring partner required clean exit within three months. A partial MBO loan against the business's recurring fee income was the solution.
Our Solution
Doulton arranged a partial MBO loan assessed against the firm's fee income, recurring client base, and the remaining partner's personal guarantee. The retiring partner received full payment on completion. The loan was structured over four years to keep repayments proportionate to the firm's net profit.
The Outcome
Retiring partner paid out in full. Remaining partner now sole owner. Fee income maintained at pre-MBO levels with 100% client retention in the transition year. Loan repayments well within the firm's cash generation capacity. Key highlights: Retiring partner paid in full - clean exit within 3 months; 100% client retention in transition year; Loan repayments within firm's comfortable cash generation capacity.