In many situations and especially on larger transactions, management teams might not be in the lead position for orchestrating an MBO. The vendor, corporate or otherwise, might appoint their own advisor to look at a range of acquirers, including both trade and private equity.
We provide advice to management teams to assist them in this process and to introduce them to potential private equity funders at an early stage which will enable them to make the best possible case to acquire the business ahead of a trade buyer. This will generally involve the preparation of a focused strategic growth plan and to work with a limited number of funders who are prepared to put resources to bear to secure the deal. The vendor's advisors might still seek to select the eventual purchaser, but we will request to work with them to ensure management have a say in who that will be and to get the best possible equity deal.
A key aspect of our role is to act as the management team's guide through the process, helping them understand what is involved, what the likely requirements will be from investors and lenders and how to avoid potential pitfalls. The key to a successful buy-out is not just the completion of the deal but the effective delivery of the business plan including the eventual exit for all shareholders.
‘’I am thankful for all of Spectrum’s support and advice throughout a difficult and time-consuming process. Not only did they provide good management advice and financial modelling support on our deal, they also problem solved some of the structural issues we encountered on the wider deal. They were a valuable member of the process.’’Ian Darby, Executive Chairman, Towergate Financial Limited
Leisure Pass Group
Thomas J Fudge's
Clearwater Technology Ltd.
Towergate (now rebranded Wren Sterling)
- Sector: Consumer, Retail and Leisure
- Deal type: Company Sale – Family/Private, Management Roles
- Deal size: Undisclosed
- Deal team: Simon Davies
- Year: 2014
Leisure Pass Group