Corporate Finance

Our team nets successful MBO deal for Big Prawn

New funding and ownership structure secured for seafood specialist

Background

Formed in 1998, Big Prawn is a leading supplier of high-quality seafood and shellfish to retailers and food service businesses across the UK, with revenues in excess of £37 million. Headquartered at a purpose-built facility in Norfolk, the business provides an award-winning range of own-branded and branded products – underpinned by continuous innovative new product development – to the majority of the leading retailers in the UK.

Action

Our Corporate Finance team was appointed as lead advisers to implement a debt-funded management buy-out (MBO). The founding shareholders were looking to secure a partial exit while retaining a significant equity stake and remaining the largest shareholders in the business. The team also helped the company to secure significant working capital facilities with HSBC and enabling the business to accelerate its exciting growth plans

Outcome

Our team project managed the deal from start to finish, designing and advising on an attractive MBO structure, obtaining the necessary tax clearances to ensure the shareholders obtained Entrepreneurs’ Relief, and advising on all of the commercial and tax aspects of the deal to deliver a successful outcome. The team also prepared and stress tested a fully integrated financial forecast, and led negotiations to secure a credit-backed funding offer while managing the external financial due diligence process.

The company passed to the new ownership of the management team, which has led to greater alignment of interests and a secure future for the business and its employees.

The new ownership has led to greater alignment of interests and a secure future for the business and its employees. Dave Howes Corporate Finance

Related team

Dave Howes

Dave Howes

  • Partner
  • Corporate Finance
  • Norwich

James Cooper

James Cooper

  • Director
  • Corporate Finance
  • Norwich

Tony Longman

Tony Longman

  • Director
  • Corporate Finance
  • Norwich

Matt Field

Matt Field

  • Director
  • Corporate Finance
  • Norwich