£25m MBO – Deal Completion

by Jul 18, 2019Case Study, CODE Investing News, Small Business News

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We’ve helped a global construction contractor source an MBO funding package from a range of lenders alongside our corporate finance partners.

6 figure Unsecured loan for Apex Prime Care

Our client is a highly regarded global construction related contractor. The senior management team engaged CODE to source a funding package needed to support a £25m management buy out, in addition to introducing them to the other relevant professional advisors needed to deliver the transaction.

To make the buy-out work, the finance package had to include term debt, and multiple asset-based lending lines, CODE’s Head of Transactions, Chris Roberts observed, 

This was a very complex set of circumstances that required careful structuring and coordination with other professionals. However, our client commands a strong position in the market, so we were delighted to assist and also confident of success.

CODE enjoys excellent relationships with a number of corporate finance lead advisors. For this MBO, Chris Roberts introduced the management team to Adam Rowlands from Keystone Partners and worked with them closely throughout the deal. 

Working as part of the transactional team CODE secured a number of multi-million-pound credit-approved offers from a range of banks and specialist ABL providers, as well as unsecured debt from an institutional lending partner. This gave management a wide range of options on how to progress their buy out. 

After seeing drawdown of funds successfully achieved:

Managing Director of the Business;

We are grateful to all the professionals that worked very hard and tirelessly throughout the process to deliver the deal. With the new additions to the board of directors, we are now well positioned to continue our planned expansion”.

Chris Roberts, Head of Transactions at CODE said,

“We are pleased to work with Adam and his team to help deliver for our client. Our guiding principle throughout was to align management and vendor interests to ensure continued growth of the business. We look forward to delivering the same positive results for other business owners looking to exit.

Adam Rowlands, Partner at Keystone Partners said, 

After running a confidential process, we are delighted to successfully complete the transaction that achieved the key requirements for both the management team and the vendors. As an active buyside advisory firm we look forward to working with CODE on future transactions”.

Lee Clifford, corporate partner at law firm Freeths sees this type of tax efficient deal becoming more and more common at a time of continued political and tax uncertainty. He said,

“ It provides a win win solution. Owners of businesses can realise value while at the same time retaining an interest in the business they have worked hard to build up. It also allows them to incentivise future management to grow the business. Keystone and Code both understand the drivers of these deals inside out, which is essential”.

To find out how CODE can help you, please contact us on 020 3923 3373 or fill in a few brief details here and we’ll get back to you.

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