Removing the Bar on a £300,000 Law Firm Buyout

The purchasing law firm wanted to pursue the opportunity, but they knew they needed outside help to raise the required capital. Unfortunately, the market is complex and features many different lenders – including both mainstream banks and third-party specialists. How could the firm know which was the right lender to approach, and which type of finance agreement they should choose? 

Why was there a problem?

The majority of their problems were based on a lack of market knowledge, which is not at all rare in professional services. If you’re concentrating on growing your own business, you’ll have had little time to explore the lending market and may have only taken on small credit facilities through your personal bank or similar. 

Not only are there lots of different lenders operating in the UK, but some of them won’t offer favourable terms if they’re either hesitant about your sector or your business. You need to do more to portray your business in a favourable light and secure the investment you need.

The buying law firm had been successful and was growing, while the one that would be absorbed was struggling to recover from slow COVID-19 trading. This presented the buyout as something mutually beneficial – but such a vast amount of working capital meant they needed specialist support. To help mitigate their lack of knowledge, the team approached Rangewell to act on their behalf. 

Why we were able to help

A law firm is a tangible asset, so lenders can offer terms based on the business’ value. However, the selling firm had been struggling and the buyer was performing well but not exceptionally – so lenders needed to be shown the value in the agreement for them to offer favourable rates. 

Rangewell spoke to the law firm and worked to build an effective business plan that showcased the value of the buyout and the strength of their existing business. This was then taken to the lender’s market, with our assistance, and presented to three lenders we’d narrowed down as experts in the legal services industry. 

Ultimately, this meant that the client received three full offers for the amount they needed. The repayment terms were also secured at a rate that made sense for the business and was absorbed by the growth forecasted post-buyout. 

About finance in the legal services industry

Legal services is a rapidly growing sector in the UK, reaching turnover figures of around £32 billion in 2022. To support and enhance this growth, law firms can turn to finance lenders for business loans, buyout loans, office refurbishment loans and more. Whatever agreement you need, you can also act with a broker on your side to help secure favourable terms. 

Rangewell gets you in front of the right lenders

Just as you act on behalf of your clients to represent them in law, we act on your behalf to secure the finance you need to grow. We’ll help you navigate the lending market, find the ideal partner and secure the credit you need at a rate that suits your business’ future. Contact us today for a free consultation to see how we can help.