Background

Founded in 1995, GHG specialises in developing bespoke claims management and loss adjusting for the UK insurance sector, covering both the domestic and commercial markets. The company has enjoyed a sustained period of growth after expanding its offering and has won a number of significant new contracts in recent years. The shareholders were looking for a buyer who could help accelerate the management team’s ambitious growth strategy and therefore appointed our Corporate Finance team to manage the sale.

Action

Our Corporate Finance team conducted a full sales process, marketing the business to both private equity and potential trade acquirers in the UK and overseas. The business received significant appetite and interest from potential buyers who were attracted by GHG’s excellent reputation, size and niche proposition. Multiple offers were obtained, with shareholders agreeing the sale of GHG to an enthusiastic private equity firm, whose investment would enable the management team to benefit from the future growth of the business whilst allowing the business founder to retain a shareholding in the business.

Outcome

The £17 million management buyout (MBO), led by our Corporate Finance team, will allow the founder to continue holding a significant shareholding in the business and retain a position on the board.  GHG’s Managing Director, who had been previously introduced to the company by the FRP team, acquired a significant minority shareholding. The rest of the senior management team and an incoming Executive Chairman also acquired minority shareholdings.