McBrides, a member of The Corporate Finance Network based in Kent, has advised two shareholders on the purchase and disposal for two retail companies.Due to a 4-year negotiation between two shareholders of two separate entities, both within the retail sector, the business owners went to McBrides to get advice and identify their options. The long-lasting negotiations were due to the two shareholders having different views on how the companies would be managed going forward. The shareholders owned 50% of each company.
Nigel Kimber, Corporate Finance Partner at McBrides, began by valuing each company independently, the difference in valuation determining what the amount was owned from one shareholder to the other, which was a £250,000 difference.
The second part of the project was to identify a suitable lender who could finance the £250,000 so the deal could be finalised. The McBrides Corporate Finance team, contacted Capitalise, a company which provides comprehensive searches of 300+ lenders to find the best rates and deal for businesses seeking finance. The loan was promptly secured at an acceptable rate.
The outcome was each shareholder successfully owned 100% of each company, meaning both could refocus their efforts growing the businesses independently.