Support to successful Management Buy-In team has been saved
Case studies
Support to successful Management Buy-In team
Finding the right funding match
Deloitte’s Private Equity and M&A teams supported an MBI team to successfully acquire the business and assets of a leading consumer business, including a number of production facilities and a several well-known brands.
Deloitte’s knowledge of the Private Equity and Debt markets was crucial in helping the management team secure funding for the transaction.
Background
The team met the client who had identified the target business and was looking to raise finance to support him acquiring the business. The client had extensive experience of the consumer sector, and saw an opportunity to apply his knowledge and skills in launching brands into international markets to the business. However, the business was being auctioned in a trade-only process and the client had not been able to secure funding to support an offer.
Private Equity and M&A advice
The team was able to work with the client to:
- Develop a business plan
- Build a comprehensive operating model
- Recruit a complete management team
In addition, the team was able to identify which private equity firms were most appropriate for the opportunity, and introduce the client and his management team to those parties. A preferred financial partner was quickly selected.
Debt advice
Deloitte’s Debt Advisory team worked with the client to raise an asset backed lending facility from a club of ABL lenders and a high street commercial bank. Deloitte managed the full banking process, maintaining competitive tension between a club of lenders and using its credentials in ABL deals to advise on the optimal debt financing package. A competitive deal was delivered within a tight timeline.
Business Modelling
Deloitte’s Business Modelling team worked with the client and the management team to assist them in the construction of a detailed integrated financial model of the key drivers of the business operations and proposed financing structures. This enabled the client to assess the financial implications of the strategic opportunity and demonstrate this to potential funders to enable them to secure the required financing.
Tax advice
Deloitte’s tax team worked with management to negotiate a tax efficient structure for their personal investment into the deal with the private equity sponsor. Deloitte has also been retained as personal tax advisor to the client post-transaction.
Outcome
The client and the management team were the successful acquirers of the business and assets of a leading consumer business. They were able to raise funding from private equity and a three-bank club to support the transaction.
The client plans to continue growing the business, to refresh and expand the product portfolio, and to move into a number of new international markets.
