Succession Planning

Long-term family business operating as a wholesaler and retailer, with an annual turnover approximately of $19M.

The client was looking for options to finance the growth of their firm using their business assets as security thereby reducing the reliance on the owner’s personal assets to support the business finance. The owners also wanted to have options to pursue personal investment opportunities.

All of this was required at a reasonable cost comparable to historical Bank finance. The DAB Financial Group team created for the client noted that their existing Bank would not do this.

Approach

The customer was assigned a senior Client Manager to coordinate the specialists in the DAB Financial Group and maximise the outcome. The DAB Accounting specialists provided full historical financial data and then prepared budgets with the input of the DAB Finance experts to meet potential lenders’ requirements.

As a result of this group interaction, DAB Finance put together a detailed plan to quantify the finance required and emphasise the strength of the business to support the requirement. This was then taken to the finance market.

Results

The DAB Client Manager advised the client that the team had secured all the finance required by the business to fund its growth at a similar cost to historical lending, whilst removing all the business owner’s personal assets from the security required by the lender.

This success also enabled the owners to engage with the DAB Financial Group Wealth Creation team to progress a number of their individual investment goals by allowing them to use their now available personal assets for alternative purposes.