Every California business buyout faces the same critical challenge: securing enough capital, quickly enough, to meet legal deadlines without destroying the business.
Whether you're buying out a partner or navigating a divorce, the stakes couldn't be higher. One wrong move can trigger massive tax bills, violate statutory requirements, or drain your working capital. At Capital Direct Funding, we've closed hundreds of these deals. Here's what you need to know—and why timing is everything.
The $15 Million Game Changer
The new "One Big Beautiful Bill Act" (OBBBA) just transformed buyout economics:
- Capital gains exclusions up to 100% for qualifying businesses
- Increased QSBS cap from $10M to $15M
- Permanent 20% pass-through deduction
Translation: Sellers can now save millions in taxes—making deals more negotiable and buyouts more affordable. But only if you structure financing correctly.
Two Buyouts, Two Different Nightmares
Partnership Buyouts: The 120-Day Clock
Under California's RUPA, you have just 120 days after a partner's written demand to pay their "fair value"—without minority or marketability discounts. Most businesses don't have that cash sitting around.
The Solution: Bridge financing that meets statutory deadlines while you arrange long-term capital.
Divorce Buyouts: The 50/50 Trap
California's community property laws mean your spouse owns half your business. Forensic accountants will add back every personal expense, potentially doubling your buyout cost.
The Solution: Structured financing that preserves operations while meeting court-ordered equalization payments.
Why Traditional Lenders Fail at Buyouts
Banks see "partnership dispute" or "divorce" and run. They don't understand:
- California's unique statutory requirements
- The urgency of court deadlines
- How to value businesses mid-transition
- The new tax advantages you should be leveraging
We do. Capital Direct Funding specializes exclusively in complex California business transitions.
The 2027 Advantage You Should Plan For Now
California's new Civil Code § 2951 (effective 2027) will revolutionize divorce buyouts by allowing loan assumptions. Smart business owners are already structuring their commercial loans with similar provisions. We can help you get ahead of this curve.
The Hidden Costs of Waiting
Every day without financing costs you:
- Legal fees from extended negotiations
- Lost business from partnership uncertainty
- Tax advantages under expiring provisions
- Competitive position while you're distracted
3 Reasons Deals Die (And How We Prevent Them)
"The valuation was contested" -We fund based on agreed valuations and adjust terms if needed
"We missed the statutory deadline" -Our 48-hour approvals ensure you never miss critical dates
"The payments killed our cash flow"- We structure terms around your business cycle, not arbitrary bank requirements
The Bottom Line
California buyouts are legally complex, time-sensitive, and expensive. But with the right financing partner, they're also opportunities to:
- Consolidate ownership
- Eliminate conflicts
- Position for growth
- Maximize new tax benefits
The question isn't whether you'll need buyout financing—it's whether you'll be ready when you do.
The Clock Is Ticking. We're Ready to Fund.
Every day matters in a buyout. Don't let perfect be the enemy of done. Call now and let's solve this together.