Finance Advisory For Business Acquisition

Our business finance team supported our client through the process of this business acquisition.

An MBI is when a company is bought by external managers who are not employed by it and they replace the existing management team

The Case

Our client wanted to buy an established company for £2.8m and approached us for help structuring the transaction and raising finance. Our client has significant industry experience but wanted to minimise the personal cash needed for the acquisition.

Working with Pilot Fish

Pilot Fish were engaged from an early stage. This meant we could help shape the deal by being involved with the negotiation of heads of terms and deal structure.

Our experienced business team helped the client navigate the purchase process, liaise with the seller, solicitors and accountants at the same time sourcing the finance to enable the purchase.

The Solution

The acquisition completed with the client only needing to find £200k to fund the transaction. The rest being financed through deferred consideration, utilising cash in the target business and a new invoice discounting line.

Further working capital facilities are already lined up to fund investment in the business and further growth plans.

The invoice discounting facility was for £1.5m and implemented within 4 weeks of the introduction to the lender allowing the transaction to be completed quickly and with good terms.

The Result

A successful acquisition for the client securing a company with significant turnover and the potential to grow further both organically and with further acquisitions.

Client feedback…
“Having assisted me with a number of acquisitions, Richard has proven himself to be a commercially minded finance director able to negotiate and execute deals. His team are experts at raising business finance and I would not hesitate to recommend them.”
Group Managing Director