Case Study: Engineering Company
The client need
Introduced to us by a business consultant contact, the Sussex-based client required £400k, raised through the financing of over 80 assets for the new management team to purchase the shares of the business to fund a Management Buy In, provided by us in the form of a Sales & Hire Back Facility.
The original directors were looking to retire, having set up the business 40 years prior and built it up to a £multi-million turnover company. The new management team we’re looking to take over the business and continue its sturdy growth and success but required the funding. The refinance involved over 80 different pieces of engineering equipment to enable us to raise the the required funding with their bank providing the remaining balance,together forming part of the overall capital to be raised to ensure the purchase price could be met.
The Davenham solution
We worked with a long-term contact and renowned Asset Valuation company to undertake detailed valuations which included visiting the premises in East Sussex and inspecting. We obtained clear title to the assets concerned highlighting additional challenges due to the age of certain assets, however we also had to deal with sensitivities surrounding the sale of the business whilst staff were not aware, meaning we could not simply call the finance team for invoices for example. To manage this sensitivity, we made sure our team only dealt with the management team to respect their wishes.
When it came to the lawyers, we worked on drafting and negotiating the SPA to include warranties within the sale to minimise risks following the funds being released.
Introduced to us by a business consultant contact, the Sussex-based client required £400k, raised through the financing of over 80 assets for the new management team to purchase the shares of the business to fund a Management Buy In, provided by us in the form of a Sales & Hire Back Facility.
The original directors were looking to retire, having set up the business 40 years prior and built it up to a £multi-million turnover company. The new management team we’re looking to take over the business and continue its sturdy growth and success but required the funding. The refinance involved over 80 different pieces of engineering equipment to enable us to raise the the required funding with their bank providing the remaining balance,together forming part of the overall capital to be raised to ensure the purchase price could be met.
The Davenham solution
We worked with a long-term contact and renowned Asset Valuation company to undertake detailed valuations which included visiting the premises in East Sussex and inspecting. We obtained clear title to the assets concerned highlighting additional challenges due to the age of certain assets, however we also had to deal with sensitivities surrounding the sale of the business whilst staff were not aware, meaning we could not simply call the finance team for invoices for example. To manage this sensitivity, we made sure our team only dealt with the management team to respect their wishes.
When it came to the lawyers, we worked on drafting and negotiating the SPA to include warranties within the sale to minimise risks following the funds being released.