Corporate Finance

Business MBOs create new market leader

Team designed successful deal structure

Background

Project Hugo is a strategic investment vehicle established through the management buy-outs (MBOs) of two complementary businesses involved in the manufacture, distribution and installation of office and leisure furniture. Both businesses were market leaders in their own sectors; the decision was made to join the two companies, to create a uniquely positioned, agile and successful contract manufacturer and installer with access to a global market.

Action

Our Corporate Finance team was appointed as lead advisers on the deal, which consisted of two phases; the leveraged MBO of Company A, followed by the subsequent leveraged MBO of Company B. As lead advisers, our team designed, coordinated and integrated a complex deal structure to meet the objectives of all stakeholders. The team created an integrated financial model and business plan, ran a competitive process to raise capital, led on all negotiations, and project managed the external financial due diligence. The team also obtained all the necessary tax clearances without any HMRC queries, and advised on all the commercial and tax aspects of the legal documents while driving the deal to successful completion.

Outcome

With a combined enterprise value of £31 million, the transaction was supported by £13 million of bank debt facilities and £18 million of shareholder funding.

The enlarged Project Hugo group subsequently reported combined annual revenues of more than of £28 million, and significant opportunities for future growth.

As lead advisers, our team designed, coordinated and integrated a complex deal structure to meet the objectives of all stakeholders. Dave Howes Corporate Finance

Related team

Dave Howes

Dave Howes

  • Partner
  • Corporate Finance
  • Norwich

James Cooper

James Cooper

  • Director
  • Corporate Finance
  • Norwich

Matt Field

Matt Field

  • Director
  • Corporate Finance
  • Norwich

Tony Longman

Tony Longman

  • Director
  • Corporate Finance
  • Norwich