The background
The buyer had found the right restaurant, agreed the price, and had both the deposit and a credible plan for the business. On paper, it was a straightforward acquisition — until the bank's valuation landed.
The sticking point
The bank's valuer assessed the restaurant at £50,000 below the agreed purchase price. On top of the valuation gap, the bank demanded loan security — property or assets the buyer simply did not have. Between the shortfall and the security requirement, the deal was effectively dead with that lender.
The way past it
Rather than renegotiating the price down or walking away, we took the application to an alternative lender with an appetite for hospitality acquisitions. We structured it around the Government-backed loan scheme, which removed the need for loan security altogether. The lender's own valuation matched our view of the business, and the application was prepared to show the strength of the trade, the buyer's plan, and comfortable affordability of the repayments.
The result
The application was approved at the level the buyer needed — no security required, no price reduction, no lost deposit on legal and professional fees already incurred. The acquisition completed.
The acquisition completed.
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