Background

An owner-managed business, which designs, sources and distributes audio-visual accessories to retail customers and direct to consumers online, had become the leading UK business in its product category, and had built strong customer relationships with all the relevant major retail partners. This was a profitable and highly cash-generative business, and the major shareholder was looking to sell their controlling interest, and phase out their involvement over time. There were also a number of other peripheral shareholders who were not involved in day-to-day operations.

Action

FRP was appointed as the lead adviser to sell the company. Our Corporate Finance and Debt Advisory teams worked together on the assignment, supporting on the discussions with management while also helping the company to raise the debt required for a management buy-out (MBO) of the shareholders.

Our team project managed the deal from start to finish, including valuation, structuring, and liaising with tax advisers, lenders and lawyers. They helped to agree a structure for the deal, leading ultimately to the successful MBO, and had a crucial input into commercial negotiations, and on the legal documentation for the sale and debt raise.

Outcome

Our team delivered a successful exit for the majority owner, along with the buy-out of the peripheral shareholders. The business is now under 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.