We were engaged on the sale of a very successful marketing company to the management.
The transaction was completed at the height of the COVID-19 pandemic, which brought its own added complications. The transaction was vendor-financed without any external funding and was structured by setting up a new holding company which acquired the existing shares for a sum in excess of £3m.
This price was satisfied by the new holding company: issuing shares to the existing owners and manager; issuing loan notes to the outgoing shareholders’ and making payment of a substantial cash sum which was financed by the Target company declaring a dividend to the new holding company following completion.
