Fresh Choice Taukau – Business Acquisition Funding

Fresh Choice Taukau – Business Acquisition Finance in NZ Done Properly

Buying a business is one of those moments where everything feels real very quickly.

Forecasts become payroll.Plans become supplier payments.Conversations with banks carry real weight.

When Chetan Patel stepped forward to acquire Fresh Choice Taukau, the commercial case made sense. The focus turned to something just as important: how the business acquisition finance would be structured, and which bank would sit behind it.

Like many owners, he could have simply approached a single bank and worked through the process. Instead, he chose to run a formal banking review.

Running a Proper Banking Tender

A business acquisition in NZ typically involves structured term lending, often combined with working capital support. The detail inside that structure matters.

The objective was clear:

• Secure commercial lending aligned with the acquisition
• Build working capital into the facility from day one
• Establish a direct commercial relationship manager
• Align the funding structure with accounting and legal advice

Finance Link prepared a full proposal and tendered the opportunity across major banks.

After negotiations, ASB was selected as the preferred banking partner.

The Structure

The final facility combined structured term debt to fund the acquisition with a dedicated working capital line, representing just over 10 percent of the overall funding package.

That working capital buffer matters in retail. Stock cycles, supplier terms, and seasonality don’t wait for new owners to settle in.

The structure was agreed in coordination with the accountant, solicitor and bank before settlement. That reduces friction later and gives the owner room to focus on operating the business rather than renegotiating terms.

The Outcome

Fresh Choice Taukau was successfully acquired with:

• 100 percent of the purchase funded through structured commercial lending
• Embedded working capital support
• A commercial banking relationship aligned with long-term ownership

For business owners considering business acquisition finance in NZ, the funding approval is rarely the hardest part.

The bigger question is whether the structure and the banking relationship will still feel right two or three years into ownership.