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.
Who this is for
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.
- 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 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.
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.
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.