The purchase price financing
The financing of the purchase price is not the task of the seller. However, since especially in the case of succession arrangements through Management Buy Out (MBO) or Management Buy In (MBI), purchase price financing is a challenge, the seller should also pay increased attention to the topic.
Seller and buyer are in the same boat
Almost all company acquisitions require financing by a credit institution. Many buyers underestimate the amount of time and information this requires. As a result, the process of selling is also delayed for the seller. What can the seller do to help the buyer secure financing? First of all, he should assist him in providing the information required by the bank, if necessary also participate in the bank meeting. The buyer should be advised to choose the right bank and prepare well for the talks. If the purchase price is reasonable, nothing should stand in the way of the acquisition loan. The buyer should be aware of all available subsidy options, e.g. subsidised KfW loans. We can put you in touch with renowned subsidy specialists who, if you wish, can offer you everything from a business plan to complete subsidies and financing as a buyer from a single source.
Should a gap nevertheless arise in the financing package, the seller still has the option of a vendor loan (Seller loan) by lending or deferring part of the purchase price to the buyer. The risk that the sale will fail due to the financing is high ? especially if the purchase price appears excessive to the bank or collateral is insufficient. We accompany you in the important negotiations and achieve the optimal results for you.