- Client: “Business A” (NSW), caravan retail & servicing
- Objective: Purchase an established caravan dealership as a going concern
- Trading history: 8 months under current ABN
- Challenge: Limited financial track record + significant goodwill component
- Outcome: Acquisition funded with a tailored multi-facility structure arranged by Auscorp Finance
- Short trading history (8 months) and limited financials
- Seasonality in caravan sales affecting cash flow forecasts
- Mix of funding needs: goodwill, floorplan/stock, and equipment
- Need to preserve working capital post-settlement
Deal mapping & lender strategy
We positioned the acquisition as a going-concern purchase with demonstrable historical performance from the target business, supported by independent verification and a conservative transition plan.
Funding structure (illustrative)
- Goodwill & going-concern loan: Term facility to acquire the business (principal & interest), secured by a GSA and director’s guarantee, with a short interest-only period to smooth seasonality.
- Floorplan / stock finance: Revolving facility secured by caravans on PPSR, aligned to stock turn.
- Chattel mortgage (equipment): Fixed-term for workshop equipment and fit-out.
- Working capital buffer: Modest line to manage accessories/pre-delivery costs in the first quarter.
Indicative numbers (for example only):
Purchase price: $1.05m (Goodwill $550k; Stock $350k; P&E $150k)
Buyer equity/deposit: $120k
Facilities arranged:
• Goodwill/going-concern loan: $500k (P&I after 6-month IO)
• Floorplan/stock finance: $350k (revolving)
• Chattel mortgage: $150k (5-year term)
• Working capital line: $80k (revolving)
Verified historical performance of the target (management accounts & BAS)
- Detailed business plan, 12-month cash flow, and seasonality assumptions
- Buyer’s industry CV and execution capability
- Stock list, valuation support, and PPSR controls
- Clean ATO portal and bank statements
- Sensitivity analysis (lower sales, longer days-in-stock) confirming DSCR headroom
- Negotiation & timelines
- Acquisition completed on time with sufficient working capital for day-one operations
- Seasonality-friendly structure (short IO period) to ease the first trading quarter
- Preserved cash via floorplan and asset-backed funding rather than over-reliance on unsecured debt
- Clear covenants/KPIs around stock turn and reporting, increasing lender comfort and pricing competitiveness
- Strong underlying business with repeat customers and service income
- Sensible buyer equity contribution
- Robust cash-flow modelling and credible transition plan
- Granular PPSR controls over high-value, serial-numbered assets (caravans)
Documents We Curated (Typical Set)
- Sale of business contract, stock list & equipment schedule
- Historical financials/BAS of the target + limited trading data for buyer entity
- Business plan, 12–24 month forecasts, seasonality & sensitivity analysis
- Identification/KYC, ATO portal, bank statements
- Insurance confirmations, PPSR framework and security documentation
Thinking about buying an existing business?
We’ll map your deal, prepare a lender-ready credit pack, and negotiate terms that fit your seasonality and cash-flow needs.
Need help identifying eligible assets or exploring financing options?
Contact us today to discuss your strategy!
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