Seeing it through
A Midlands based niche double-glazing manufacturer transitioning to Employee Ownership after being in founding family control for over 30 years; the Company enjoys a market-leading position in its sector.
The 2 key vendors were anxious to ensure that, if one or other of them dies before the EOT completes, the Company’s valued relationships with customers and suppliers would not come under financial stress.
FAB put in place Deferred Consideration Insurance covering the vendors on a Joint Life First Death basis for 10 years (reflecting the EOT Repayment Schedule) thus ensuring in the event of either vendor dying that a) the EOT/Company is relieved of the debt and b) the founding family immediately receives any outstanding deferred consideration via the policy pay-out.
Sums Assured: £4 million
Lives Assured: 2
EOT/DCI Term: 10 years