£50,000 funding to take over a new kind of pharmacy businessPublished on 10th February 2020 2020-02-10T12:00:00+00:00
New technology has helped make many new types of business possible. But a new business means new risks - and an untried business idea makes the risks are unknown.
It could take years - and continuing investment - to provide working capital, before you can start to generate profits, and then only if the idea is a success.
As a result, many people will instead buy into an established business. The costs involved in the purchase of a partnership in a successful business may seem high, but there will be an established business with a list of clients to work with, providing revenue and profitability from day one.
We recently helped arrange £50,000 funding to help a manager buy the innovative business she had been working for.
A Management Buy-In is a common arrangement to allow a manager or management team to take ownership of a business they are already running. It can have several advantages:
- It means taking a share in a business which you already know well
- It avoids the cost and uncertainty of starting up a new venture
- It can let you secure your future - and help you become your own boss
The sums involved will reflect the current turnover and potential of the business. There is usually scope for negotiation, and the most suitable type of funding will depend on the scale of funding agreed.
At Rangewell we can help find the answers you are looking for.
How Rangewell helped a manager become a partner
Our client was a manager working with a business in the pharmaceutical sector, with a new business model. They would package and deliver medication to individuals and care homes, catering for the complex medical needs of those who might be unable to visit a high street pharmacist.
The business had been running for two years and was growing steadily, but the founding partners felt that the time had come for them to concentrate on other business interests - and offered to sell the business to the manager, who had been with them for 18 months and who was responsible for much of the success of the business.
The owners were happy to agree a buy-in at £110,000, which would mean something of a bargain to acquire a business with a good and growing turnover, and a great deal of potential for the future. But it would mean a large investment for the manager, whose savings were depleted by a recent home purchase.
She needed to borrow £50,000, and recognised that because of the unusual nature of the business, she might have problems explaining the potential to a lender. She decided to call us at Rangewell to take advantage of our expertise.
First, we found a lender – a high street bank – which we knew would take a positive approach to new business ideas - especially when they have been proven by a few years of successful trading. As she was now a homeowner, they were prepared to offer our client an attractive rate of 4% above base rate over 10 years on a capital and interest unsecured basis.
Although she would still need to make a contribution from her own savings, this deal would put the business firmly in the hands of our client.
The funding Rangewell arranged:
£50,000 at 4% above base rate 0.75%* over 10 years
The process was fast, simple and - because we were able to approach lending specialists at the bank who understood the sector - done without the need for masses of information or numerous face to face meetings.
At Rangewell, we help find better answers to all types of funding needs - even when there are challenges, like unfamiliar business models.
Our experts work to find the most appropriate solutions while our network of contacts and our unique online search facility helps find the most cost-effective rates.
Business loans, Asset Finance, Commercial Mortgages, or any other kind of finance - our expert teams find the most appropriate funding solutions while our network of lender contacts and our unique online tool let us find the most cost-effective rates for your pharmacy business.
Our service is independent, fast and absolutely free.
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