When a timber and builders merchants needed a funding partner to support a 75% Management Buy-In, we delivered a Structured Finance solution that combines the funding power of Invoice Finance, Cashflow Loan and Asset Finance to minimise deferred consideration, protect day-one liquidity and keep operations running smoothly.
Solid demand, bigger plans
A well-established timber and builders merchants supplying across Yorkshire, the business already had strong customer relationships and steady demand. The incoming purchaser sought to acquire 75%, with the remaining director retaining 25% and staying with the business. With the opportunity to use the company’s assets intelligently to fund the transaction, reduce deferred consideration and set up the new owner to scale, the business needed a funding partner that could make it happen.
Minimum friction, maximum potential
A multi-party MBI is all moving parts: a fixed completion date, consideration to balance between upfront and deferred, and the need to keep daily trading going. Splitting funding facilities across more than one lender risked unwanted delay, duplicated due – diligence and restrictive terms. The brief was clear: one funding partner, one joined up structure, delivered at pace.
Adam Myers, Regional Director at Ultimate Finance explains: “Every MBI has two priorities: get the deal done and keep the business trading smoothly the next day. Structured Finance should allow for both to happen with minimal pain points.”
Built for complex deals, delivered with certainty
Introducer Reach Commercial Finance turned to Ultimate Finance for a single, multi-product facility and a deal team that could lean in early. The Ultimate Finance and Reach Commercial Finance teams have supported the ambitions of many businesses throughout the past few years, so there was shared trust and a common focus: maximise realisable value from receivables and assets, plug the cashflow gap, and protect working capital through completion.
Three components, one efficient package
We built a coordinated £2m Structured Finance package designed around how the business operates and how the solution needed to work:
- Invoice Finance: £1.5m to support day-to-day liquidity through and beyond completion.
- Asset Finance (Hire Purchase): £250k secured against commercial vehicles so fleet investment didn’t dilute working capital.
- Cashflow Loan: £275k to minimise deferred consideration and provide the final piece of the acquisition requirements.
Our deal team in action
- One team, one timetable: synchronised legals and underwriting across all three products to hit the MBI completion date.
- Single funder simplicity: avoided the complexities of having to coordinate multiple lenders’ processes and requirements.
- Relationship-based approach: efficient communications with the introducer, new management team and all parties involved in the acquisition to keep momentum and remove blockers fast.
Adam adds: “We looked at the full picture – receivables, vehicles and the cashflow gap – and built one joined up facility to minimise deferred consideration and protect day one liquidity.”
The new company Director explains: “Without the assistance of Ultimate Finance, this transaction could not have happened, and this business would not be the centre point of my group of companies. Ultimate Finance were a pleasure to deal with, providing flexibility, speed and the ability to deliver what they promised, which has differentiated them from other funders I have used in the past. I will certainly continue to work with them as I look to grow my portfolio of companies.”
MBI completed, trading uninterrupted
The MBI completed on schedule with working capital left intact. Vehicles were financed without impacting cashflow, and the new Director now plans to embed within the business, channel group demand through the merchants, and drive turnover and profitability across the region.
Get funding
Exploring a client’s MBI or complex transaction and want a single, joined up facility? Speak to our expert team. Register to become an Introducer today or speak to your dedicated Regional Director.
