Succession Finance for Professional Practices
Passing the practice on,
properly funded.
Succession means someone buying out someone else: a next-generation partner, a family member, the management team or an outside buyer. We help structure the funding so the practice stays strong through the handover.
- Confidential, no-obligation discussion
- Whole of market access
- We are a broker, not a lender
“He knows his stuff and is easy to deal with.”
- 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
Quick answer
What is succession finance for a professional practice?
Succession finance funds a change of ownership inside a practice: a management buy-out, a family buy-out, next-generation partners buying in, or a retiring owner being paid out. The aim is to give the outgoing owner their value while the practice keeps enough working capital to trade through the handover. We structure the deal and search the market for suitable lenders.
The pressure
The practice is ready. The buyer’s cash isn’t.
Many practices are built by one generation and taken on by the next. The people best placed to continue the practice are often the ones least able to pay for it outright.
In family businesses, succession can mean one family member buying out others. In partnerships, it can mean a retiring partner’s share passing to those who remain. Each needs funding structured around the practice’s future income.
What can be financed
What it can cover.
“Finance that appeared unattainable was sorted within a short period of time.”
- 01 Management and partner buy-outs The team taking ownership from the founder.
- 02 Family buy-outs One family member buying out others.
- 03 Retiring partner’s client base Passing to a remaining partner or incoming buyer.
- 04 Staged succession Ownership transferred over several years.
- 05 Deferred consideration Payments to the outgoing owner over time.
How it’s often structured
Structured around the practice.
Succession funding is usually a term loan to the buyers, whether that is the next-generation partners, the management team or a family member, repaid from the practice’s future profits. It is often combined with deferred consideration, where the outgoing owner is paid part of the price over time, which reduces the amount borrowed and gives lenders comfort that the seller is invested in a smooth handover.
Staged successions, where ownership passes over several years, can be funded in stages too. Premises may be bought at the same time or left with the outgoing owner under a lease, which changes the amount required considerably.
The earlier the plan is made, the more options there are. A structured handover period, in which the outgoing owner introduces successors to clients or families, is one of the strongest points a lender can see.
- Management or partner buy-out, with the team borrowing to buy the owner’s share.
- Vendor deferred consideration, with part of the price paid to the seller over time.
- Family buy-out, one family member buying out others’ shareholdings.
- Premises separately, bought with a commercial mortgage or kept by the outgoing owner and leased.
How we help
Not one lender. The right one.
We don't offer a single product. We look at what you're trying to fund, how your firm earns and spends, and which lenders in the market are most likely to support it. Then we prepare the case, approach suitable lenders and manage the process through to completion.
- 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.
What lenders will want to see
What lenders will look at.
- The practice’s accounts and its record of profitability
- Who holds the key client, patient or family relationships, and how they will transfer
- The successors’ experience and their own contribution
- The price, how it was reached and any deferred payments
- The ownership structure after the handover
Our guide to funding partner retirement and succession covers the planning in more depth.
Questions
What firms usually ask.
What is a practice MBO and how is it funded?
A management buy-out is where the team already running the practice buys it from the founder or owners. It is typically funded with borrowing repaid from the practice’s future income, often combined with the buyers’ own contribution and deferred payments to the outgoing owner. We help structure MBOs for accountants, architects, funeral directors and other practices. Outgoing owners often take advice on Business Asset Disposal Relief before agreeing the structure.
How can an associate afford to buy the practice from the owner?
The people best placed to take over a practice are often the least able to pay outright. Lenders can fund much of the price against the practice’s income, and the outgoing owner may agree to take part of the price over time. The right mix depends on the practice and the lender.
Can finance fund a family buy-out of a practice?
Yes. In family-owned practices, such as many funeral directors, succession can mean one family member buying out the shares of others. Lenders look at the business’s income, the price agreed and the buyer’s role in running it. We search the market for lenders with an appetite for this kind of deal.
Can succession be funded in stages over several years?
Often, yes. Some practices transfer ownership gradually, with the outgoing owner selling a share at a time or taking deferred consideration. Funding can be structured around each stage, or around the deferred payments. Planning it early gives the practice more options and keeps it strong through the handover.
When should we start planning succession finance?
Well before the handover date. The earlier the funding is considered, the more options there are for how the price is set, how much is deferred and which lenders are approached. We can help you understand what’s likely to be supported before terms are agreed between buyer and seller.
Knowledge Hub
Read the guides.
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 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 →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
Planning a handover?
The earlier the funding is considered, the more options there are.
Before you approach a lender, speak to someone who understands the transaction. Confidential, no-obligation initial discussion.
