A co-owner is leaving and the price is agreed. Here is how the payout gets funded.
- Indicative assessment within 2 business days, with settlement typically 1 to 8 weeks depending on the lender
- Loans from $250K to $10M
- Directors, shareholders, unit holders and partners taking over a departing owner's stake
- Pays for shares, units or a partnership interest, and can refinance the business's existing loans in the same deal
- Full-doc (tax returns), low-doc or alt-doc (BAS, bank statements or an accountant's letter instead), with no-doc options on shorter terms where property is offered
Your business partner wants out. It may be retirement, a move interstate, a falling-out or a new venture. The shareholders agreement sets a price or a formula, and there is a completion date to meet. You want to keep the business, but the payout is a large sum the business does not hold in cash. Buyout finance is a business loan that pays the departing owner for their shares, units or partnership interest. You then repay it from the profits that used to be split between you. Joseph Farhat and his team work with directors and partners in exactly this position. They look at the agreed price, what the business earns without the departing owner, and the security you can offer, then find a lender that fits the deal and the date.
Who we can help access finance
- Two-director companies where one director is retiring and the other is buying their 50% shareholding at the price set in the shareholders agreement.
- Professional partnerships, such as a law, engineering or architecture firm, where the continuing partners are paying out a partner who is leaving.
- Family businesses where one sibling is taking full ownership and paying the others for their shares.
- Unit holders in a trading trust buying the units of a co-owner who wants to exit.
- Directors who must pay a departing shareholder by a completion date written into a signed share sale agreement.
- Owners who also need to refinance the business's existing loans because the departing owner wants their personal guarantee released.
- Remaining owners with equity in their home or the business premises who can offer it as security for the payout.
How Partner and Shareholder Buyout Finance Works
The lender advances the agreed buyout price, or the part of it you are not paying from your own funds. The money goes to the departing owner at completion, and their shares, units or partnership interest transfer to you. Repayments then come from the business profits that no longer go to them. Most lenders ask for security. That may be a mortgage over property, a charge over the business's assets, a personal guarantee from the continuing directors, or a mix of these. Where your home is offered, it is at risk if repayments are not met, so get independent legal advice before you sign. Some departing owners agree to take part of the price in instalments after completion, which lowers the amount the lender needs to fund.
A buyout often changes more than ownership. The departing owner has usually signed personal guarantees on the business's existing loans, equipment finance and overdraft, and will want to be released from them. Only the lender that holds a guarantee can agree to release it. That is why many buyouts refinance the existing facilities at the same time as funding the payout, so the new loans carry only the continuing owners' guarantees.
The order of work matters. Your lawyer documents the sale and checks what your shareholders or partnership agreement requires. Your accountant confirms the value, the tax position and whether the business can carry the new repayments. We are a finance broker, not a lawyer, accountant or tax adviser, so we work alongside both of them. Joseph Farhat and his team review the agreed price, the business's financials and your security, then match the deal to a lender from a panel of 90+ bank, non-bank, and specialist lenders and manage it through to completion.
What Lenders Assess for Partner and Shareholder Buyout Finance
Earnings after the exit
whether profit holds once the departing owner stops working in the business, and what it costs to replace their hours or their client relationships.
The signed agreement
a share sale, unit sale or partnership exit agreement showing the price, the completion date and any conditions.
How the price was reached
a valuation, a formula in the shareholders agreement, or a figure the owners negotiated, and how it compares with what the business earns.
Existing debt
loans, equipment finance and tax balances already in the business, and whether they are being refinanced as part of the buyout.
Security available
property you or the business own, business assets, and the continuing directors' guarantees.
Restraint and handover
whether the departing owner has agreed not to compete or take clients, and how long they will stay to hand over.
Your own position
your experience running the business, your personal credit file and any other borrowing in your name.
The Partner and Shareholder Buyout Finance Process: What to Expect
- Tell Joseph Farhat and his team the agreed price, the completion date and who is leaving. Bring in your lawyer and accountant at the same stage, if they are not already involved.
- Provide the draft or signed sale agreement, two years of business financials or BAS, the business bank statements, a list of existing business loans and details of any property security.
- We take the deal to the lenders on the panel most likely to fund a buyout of this size and type, and set out the rate, fees, security and guarantee terms each would ask for.
- The lender issues a written approval. We go through it with you before you sign, and your lawyer and accountant can review it too.
- At completion the lender pays the departing owner, and any refinanced loans are paid out. For a company, the share transfer must be notified to ASIC within 28 days, which your lawyer or accountant usually lodges.
Indicative Finance Options
| Lender Type | Indicative Rate | Security | Typical Loan Range | Loan Term | Speed to Funding |
|---|---|---|---|---|---|
| Bank | From ~7.5% p.a. | Property usually needed, plus continuing director guarantees | $250K to $10M | 3 to 15 years | 4 to 8 weeks |
| Non-Bank Lenders | From ~10.5% p.a. | Business assets, guarantees, or property where available | $250K to $5M | 1 to 5 years | 1 to 3 weeks |
| Private Finance | From ~1.2% per month | Property security | $250K to $10M | 3 to 24 months | Available for unique scenarios |
Indicative figures only. Actual rates and terms depend on your project, financial position, property location, and lender assessment at the time of application. Rates are subject to change.
Why borrowers choose Settled With Joe for partner and shareholder buyout finance
We represent you, not the lender
Joseph Farhat and his team act in your interest from the first conversation through to completion.
Built around the completion date
the timeline starts from the date in your agreement, so the lender is chosen for its speed as well as its price.
Guarantees handled in the same deal
where the departing owner needs to be released from existing loans, we plan the refinance alongside the payout.
Your lawyer and accountant stay central
we work to the agreement they draft and the figures they confirm, not around them.
Lender appetite you cannot easily see
some lenders fund buyouts on business assets and earnings, others need property, and policy on professional partnerships varies widely.
Fewer enquiries on your file
each credit enquiry is recorded on your file, so your application goes only where it fits.
One panel, every lender type
90+ bank, non-bank, and specialist lenders, so a buyout with property security and clean financials can go to a bank at a sharper rate, and a tighter one still has options.
Private finance for unique scenarios
where bank and non-bank lenders are not the right fit, we can introduce you to private finance options.
Usually no direct cost to you
as a broker we are typically paid by the lender on settlement.
An honest answer early
once your agreement sets a completion date, tell us the date and we will tell you what is realistically achievable before it.
Frequently asked questions
What is partner and shareholder buyout finance?
It is a business loan used by the continuing owners to pay a departing partner, shareholder or unit holder for their share of the business. The loan pays the agreed price at completion, and the departing owner's interest transfers to the buyers. The business then repays the lender from its profits. It is often combined with a refinance of the business's existing loans, so the departing owner can be released from guarantees on them.
Is there stamp duty on buying shares in a NSW company?
In most cases, no. NSW abolished duty on transfers of marketable securities from 1 July 2016. That covers shares in NSW companies and units in NSW-registered unit trusts. The exception is landholder duty. It can apply when someone acquires a significant interest in a private company or unit trust that holds NSW land with an unencumbered value of $2 million or more. For acquisitions from 1 February 2024, a significant interest is 50% or more in a private company, or 20% or more in a private unit trust. Interests acquired within a 3-year period are added together. Where it applies, duty is charged at transfer duty rates, and the statement and payment are due within 3 months. Your lawyer can confirm whether your buyout is caught, and Revenue NSW publishes the full rules.
What if we run the business as a partnership, not a company?
Lenders can fund the buyout of a partnership interest in much the same way, with the loan made to the continuing partners. The duty position on transferring a partnership interest is different from a share sale, so check duty with your lawyer before you sign. Your partnership agreement may also set how the exit price is worked out and when it is paid. Joseph Farhat and his team work from whatever your agreement and your lawyer settle on.
The departing owner guaranteed our business loans. Can they be released?
Only the lender that holds the guarantee can release it. Some lenders will release a departing director once the continuing owners give their own guarantees and the account is in good order. Others will want the facility refinanced. Many buyouts deal with this by refinancing the existing loans as part of the same deal. We can set out what each option looks like and how it changes the total amount borrowed.
Does the departing owner pay tax on the sale?
They may make a capital gain on the sale of their shares, units or partnership interest. That is their tax position, not yours, and it is a question for their accountant. The small business capital gains tax (CGT) concessions can apply to shares in some cases, with extra conditions. Your own accountant can explain how the purchase affects you and the business. We arrange the finance and do not give tax guidance.
We have a buy-sell agreement. Does that change anything?
Some co-owners sign a buy-sell agreement, and these are often funded by life, TPD or trauma insurance. Whether yours applies to this exit, and what it pays, depends on its terms, so your lawyer is the right person to confirm it. We do not arrange or recommend insurance. Where an agreement or a policy pays part of the price, the loan only needs to cover the rest, and Joseph Farhat and his team will size the application to that figure.
Can I get buyout finance with low-doc or no-doc?
Often, yes. Lenders still want to see how the business trades, because its profits repay the loan, but several on the panel will accept BAS and business bank statements while the latest financials are being prepared. Where property is offered as security, some lenders will consider no-doc on a shorter term at a higher price. Full financials usually open up bank pricing. We will set out both paths so you can compare them.
Do you work with borrowers with bad credit?
Yes, we do. A default or past arrears on your file does not rule out a buyout, and there is nothing awkward about raising it with us. A listing says little about how the business trades or what it will earn once you own all of it. Several lenders on our panel weigh business earnings and any property security more heavily than the credit file, and will price for the risk rather than decline it. Tell us at the start, so the file goes to a suitable lender first and your file does not collect extra enquiries. Joseph Farhat and his team will tell you honestly what is achievable before you apply anywhere.
Why work with Settled With Joe to arrange your partner and shareholder buyout finance?
Because one conversation replaces a round of applications at a time when you are already dealing with lawyers, accountants and a co-owner on their way out. The people we help are mostly company directors, business partners and unit holders with a completion date in a signed agreement, a departing owner waiting to be paid, and existing loans that carry that owner's guarantee. None of that is unusual to us, and there is no judgement in the conversation. Lenders focus on what the business earns once the departing owner has gone, the security on offer, and a repayment the profits can carry. Our panel covers 90+ bank, non-bank, and specialist lenders, so a well-documented buyout can go to a bank at a sharper rate, and there are still options when the timing is tight or the structure is complex. We are based in Sydney and work with business owners Australia-wide. Joseph Farhat and his team will tell you early and honestly whether we can help and what your completion date allows.
Do you give financial advice?
No. We do not guide you on your finances, nor give financial advice. We focus on outcomes and solutions of presenting your unique scenario to the right lender so you can access funding in a timely and compliant manner.
Do you help with partner and shareholder buyout finance outside Sydney?
Yes. Settled With Joe is based in Sydney and arranges partner and shareholder buyout finance Australia-wide, for businesses in cities and regional areas. We work with clients in Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra, as well as regional areas including Newcastle, Wollongong, Geelong, Gold Coast, Sunshine Coast, and Toowoomba. Duty and transfer rules differ between states, so your lawyer will confirm the position where the business or its land sits. Joseph Farhat and his team will match your buyout to the lenders on the panel that fit it.
