Management Buy Out

A Management Buyout is when the current management team within the business work together to buy either all or a large part of the business from existing shareholders and take control of the business.

The Situation:

A Management Buy Out had been agreed in principle and the deal hinged on the company’s ability to secure the final tranche of funding to buy out the exiting shareholder.
The company had other forms of debt and the new team were ideally looking to secure funding without the need for additional, personal security being given.

The Solution

We took the opportunity to assess potential providers through the online platform provided by Capitalise, which has access to over 110 lenders.
A one stage application process was completed and UHY CF supported the company with all information requests from lenders, inclusive of cash flow forecasts.
Lenders showing an interest in the deal were discussed with our client and we helped the, narrow down their options to meet the acceptable risk profile and cost base.

The Result

Although lending was complicated by other finance facilities but we were able to work with all providers to find a deal which met the needs of our client. Unsecured funding of £110,000 was drawn upon by way of a term loan over a 60 month term. The Management Team chose to take a slightly more expensive debt facility in favour of not having to provide personal assets for security.

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