...with complicated circumstances
- Manufacturing Group in North of England
- Deal size circa £3 million
- An entrepreneurial business & the vendor did not want a trade buyer
- We identified there was a possible Management Buyout option;
- But the MBO would require an outside candidate to strengthen the quality of the management team - an MBI
- An MBI candidate was found and an MBI/MBO was achieved
- During the deal there was a change in the business' trading results & this seriously put the deal in jeopardy
- We kept all parties in dialogue and by completion there had been 8 sets of Heads of Terms!
- To further complicate matters there were several entitites involved
- a pension fund
- a sole trader business
- plus two trading companies
- A short handover period was agreed & the consideration was allocated across all entities
- The deal was funded by a combination of:
- Cash up front
- Deferred and insurance backed Loan Stock
- Deferred Contingent Earn Out Consideration
You never know what will happen during a deal to throw it into a state of confusion. Make sure you have experts acting for you who have 'seen it all before'.
Look on the About Us pages for your local member firm or Contact Us and we'll put you in touch directly.
