Succession & Partner Exit Finance
Funding the people
coming in and going out.
Ownership changes are among the largest financial events in a practice’s life. Planning the funding early widens the options for everyone involved.
- Confidential, no-obligation discussion
- Whole of market access
- We are a broker, not a lender
“I would recommend them to anyone.”
- Lender searchWhole of marketNot tied to any one lender
- Instant QuotesNo credit searchSee indicative quotes first
- Who we helpProfessional practicesSole traders, partnerships, LLPs and companies
- Our roleSpecialist brokerWe approach suitable lenders for you
The picture
Every exit needs someone to fund it.
When a partner, director or owner leaves, their capital, their share of the goodwill or their shares usually have to be paid for. That money comes from somewhere: the remaining owners, an incoming partner, a buyer or the practice itself. Without a plan, a retirement can take a large bite out of the practice’s cash at the same time as it loses one of its most experienced people.
Succession also tends to cluster. In many professions a generation of owners is approaching retirement at the same time, and the practices that manage it well are the ones that planned the funding years rather than months ahead.
The structure matters as much as the amount. Paying an outgoing partner over time, funding an incoming partner’s capital, arranging a management buy-out or selling to a third party each suit different finance. Lenders look closely at continuity: who holds the client relationships, how the handover will work and whether the practice can carry the cost.
The journey, step by step
- 1
Plan the handover
Who is taking over, over what timescale, and what the outgoing owner expects to receive and when. The partnership, LLP or shareholders’ agreement usually sets the rules.
- 2
Fund the incoming
Partners, directors or family members buying in. Capital loans to incoming partners are one of the most established forms of professional practice finance.
- 3
Fund the outgoing
Repaying capital and buying out shares or goodwill. Funding the payment can protect the practice’s working capital and give the leaver certainty.
- 4
Cover run-off
Where a closure or merger triggers PII run-off cover, which can be a significant single payment for regulated professions.
- 5
Refinance what remains
An ownership change is a natural moment to review existing borrowing and personal guarantees, particularly where the leaver gave them.
Things to consider
The conversations to have early.
What the agreement says
Many partnership and LLP agreements set out how capital is repaid and over what period. Check it before assuming the practice must pay on the day.
Client and key-person continuity
Lenders want to know the clients or patients will stay. A structured handover period strengthens the case.
Personal guarantees
An outgoing owner will usually want to be released from guarantees. Lenders will want replacement support from those who remain.
Tax for the seller
Reliefs may apply to the person selling, depending on the structure. That is a question for their accountant, and it can influence how the deal is set up.
Preparing the case
What lenders will look at.
- The practice’s accounts and how profit is shared
- The partnership, LLP or shareholders’ agreement
- The amount due to the outgoing owner and the payment terms
- The incoming owners’ experience and personal positions
- The plan for transferring client relationships
We are a broker, not a lender. We help you prepare this, search the market for lenders whose criteria fit, and manage the process through to completion. How it works →
- Whole of market accessHigh street banks, specialist and private lenders.
- Specialist understandingLenders who understand how practices earn and grow.
- Your case, properly presentedStructured and put to lenders suited to it.
- With you to completionFrom the first conversation to funds arriving.
In our clients’ words
“Simon was excellent throughout the process. He knows his stuff and is easy to deal with.”
Questions
What owners usually ask.
Can a retiring partner’s capital be repaid through finance?
Often, yes. The practice or the remaining partners can borrow to repay capital, sometimes alongside funding for an incoming partner. See partner buy-out finance.
Can the next generation buy a family practice?
Yes. Family and internal successions are common in funeral, veterinary, pharmacy and other professions, and they can be funded much like any other acquisition. See succession finance.
How far ahead should we plan?
As early as possible. Longer planning allows a proper handover, which lenders value, and gives time to structure payments to suit both sides.
Who pays for PII run-off on a merger?
It depends on the deal. The successor practice may take on liabilities, or the closing firm may buy run-off cover. Establish it early, because it affects the funding required. See our guide to solicitors’ run-off cover.
Knowledge Hub
Read the guides.
Funding Partner Retirement, Buy-outs and Practice Succession
How partnerships, LLPs and practice owners fund a retiring partner’s capital and goodwill, internal buy-outs and succession, and why planning early makes it easier.
Read the guide →Partner Capital Loans: How to Fund a Buy-in to a Partnership or LLP
How new partners and members fund their capital contribution to a partnership or LLP, what lenders look at, and what happens to the loan when you eventually leave.
Read the guide →Funding Your PII Renewal: Professional Indemnity Premium Finance Explained
How premium finance spreads the cost of professional indemnity insurance, what to check before signing, the regulatory context for solicitors, and the alternatives.
Read the guide →Let's talk
Finance for
what's next.
Before you approach a lender, speak to someone who understands the transaction. Confidential, no-obligation initial discussion.
