Management Buy Out Case Studies
What Our Clients Say:
A lot of thank-yous going around at the completion meeting, and perhaps the biggest thank-you of all should come from all of the newco team to yourselves at Sterling Capital Reserve Ltd. We were feeling almost down and out with banks not interested, when you came in to help us, and your confident and enthusiastic approach was just what we needed. From an initial email to completion in 8 weeks, great work, Thank You.
Lawrence Pacey, Rodgers Leask Group, Derby
Thanks for sourcing finance from your funding syndicate to assist my Management Buy In. My accountant was having no luck with the high street banks. I’m glad of their referral.
Tom Halliwell, Techmax Ltd, Mansfield
Many thanks for sourcing finance, dealing with all the negotiations and legals to help us with our MBO, leaving us to run the business. We never thought it would be possible after so many banks weren’t interested.
Andy Fisk, JR Travel Ltd, Ipswich
I have considerable experience in the plastics sector and decided it was time to acquire a quality business which I could develop. Banks were not interested in assisting as they tend to have a natural aversion to MBI transactions, and they seem to lack the expertise in understanding such transactions at the lower end of the scale. I was amazed at the commercial approach to my transaction taken by Sterling Capital Reserve Ltd as well as the flexibility and the speed at which the funding was in place.
Sam Hill, Adreco Ltd, Milton Keynes
Benefits for those seeking corporate finance
David Griffiths, a chartered accountant and managing director of Sterling Capital Reserve Ltd observed that: “Over the last few years, lack of bank finance and appetite has had a severe knock-on effect in the corporate finance sector. This isn’t just the multi-million pound deals, but those normal transactions, including management buy-outs, management buy-ins and corporate acquisitions at the lower end of the scale, typically for businesses in the £1m to £15m turnover range.”
Sterling Capital Reserve Ltd, commercial and corporate finance advisers, has offices in Nottingham but advise on MBO/MBI's across the UK.
David added: “We are now able to provide a line of funding to transactions that can complement and blend with other funding lines including invoice discounting, asset finance and commercial mortgages to get away transactions that would otherwise flounder. As corporate finance advisers, this alternative funding line will become more and more prevalent in funding corporate finance transactions, as the individual lenders have far more empathy with the proposed transaction than most banks and are therefore willing to take a commercial viewpoint.”
The sponsor system is particularly valuable here for both lenders and borrowers. The sponsors
have a responsibility to present quality proposals that stand up both commercially and financially.
This can only be assessed by thoroughly understanding the transaction and stress testing
financial forecasts to ensure any transaction is robust. For borrowers it means a professional
understanding of the needs and requirement of the business, combined with an open-minded approach to getting the deal done.
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