Dear UK Searchfunders, to get a deal across the line we may need to assist with clearing an existing DLA. Its a CFDF deal and if we could just write off (to balance the books) this Debt to assist the seller on clearing the other Debt aspects it could get the deal across the line. Any comments or thoughts on the possibilities, pros and cons of this would be greatly received.
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Another option is for the buyer to repay the loan at closing. One way it could work is if the director is a selling shareholder, to novate the loan obligation from the director to the buyer in consideration for a reduction by way of set-off of the purchase price owed by the buyer to the director for his/her shares. And then pay off the loan at closing. That gets rid of the loan, and is purchase price neutral.
None of this is legal, financial, tax or investment advice.