The 50 year old business, 100% financed

The target was a business that had traded in the same prestige Sydney suburb for more than half a century, sold by a retiring owner, with a loyal customer base and long-serving staff. A business with five decades of history has plenty to test, and the buyers wanted the whole purchase funded, trading stock included.

We ran the financial due diligence from a credit perspective and built the cashflow forecasts, working alongside the client's accountant and the vendor's accountant so every number agreed. When both sides' advisers have signed off on the same earnings picture, the credit team is not left refereeing a dispute. It is reading one clean file.

The file also fronted its hard parts instead of hiding them. Funding the full price plus stock pushed the security position beyond standard parameters, so the case leaned on what was actually strong: consistent adjusted earnings, staff with decades of combined service staying on, an incoming owner with senior professional experience, and servicing tested at a 12% rate that still cleared with room.

The client secured the business, 100% financed through a major bank at competitive rates and structure, with the stock funded as part of the facility.