A supplier is retiring and offered me first refusal on their business — how do I fund a buyout?

Buying a retiring supplier can lock in supply and margin; acquisition finance funds the purchase while the acquired trade's own cash flow helps service it. Acquiring a supplier can secure your supply chain, capture their margin and remove a single point of failure. First refusal from a retiring owner is often the best terms you'll ever get.

A supplier is retiring and offered me first

2 min read

Secure supplyOwn the source

Acquisition financeFund the buyout

Self-servicingTrade helps repay

Why owning your supplier can pay

Acquiring a supplier can secure your supply chain, capture their margin and remove a single point of failure. First refusal from a retiring owner is often the best terms you'll ever get.

Fund the acquisition

A business loan funds the purchase, and the acquired company's own cash generation helps service the borrowing. Run the combined figures through the affordability calculator before you commit.

Do the diligence

A friendly seller is not a reason to skip due diligence. Check the customer base, the real profitability and any liabilities so you buy a healthy business, not hidden problems.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online when the numbers work.

Frequently asked questions

Can I finance buying a supplier's business?

Yes. Acquisition finance funds the purchase, and the acquired trade's cash flow typically helps repay it. The key is diligence — buy proven profit, not a hopeful story.

Is vertical integration worth borrowing for?

When it secures critical supply and captures margin, often yes. Model the combined business's ability to service the finance and confirm the deal strengthens, not stretches, your position.