The situation
The tension: pay the exiting partner enough to move on cleanly, without loading debt that then crushes the ongoing business. Vendor deferral over 2-3 years is often the reconciling mechanism.
How we approach it
We structure the debt against what the business genuinely supports — asset-backed where property or plant exists, cashflow term loan on the balance. Vendor deferral bridges the equity gap so the business isn't over-leveraged.
What that looks like in practice
- Asset-backed and cashflow term loans blended
- Vendor deferral usually 20-40% over 2-3 years
- Business valuation done properly — not just accountant's number
- Ongoing personal guarantees minimised
- Structure allows exiting partner clean exit while preserving business cash
Typical timeline
- Weeks 1-3Business valuation, buyout structure, lender approaches.
- Weeks 3-8Application, credit, legals.
- Weeks 8-12Completion, exiting partner paid.
Common questions
How is the business valued for a partner buyout?
Multiple of EBITDA is the starting point; sector, growth and covenant adjust. Formal valuation often worth commissioning to avoid disputes.
Vendor deferral — how much and how long?
20-40% over 2-3 years is typical. Longer where the outgoing partner is comfortable and it helps the business's cashflow.
Can the business borrow against itself alone, or do I need to guarantee?
Usually some personal guarantee — but scale and cap negotiable. Purely non-recourse only where assets clearly cover the debt.
Buy out cleanly
Send the business accounts and the buyout terms — we'll structure debt that works for the ongoing business, not just the deal.