FRP advises Encore on successful MBO

Background

Based in Cambridge, Encore Group is an award-winning residential managing agent, providing a range of estate management services to over 27,000 properties across the UK. The business has grown strongly in recent years as a result of its long-standing relationships with housing developers and history of providing high-quality services to customers. FRP’s Corporate Finance team was appointed by the shareholders of Encore Group to complete a full sales process; at the same time our Debt Advisory team ran a lender education process, approaching a select number of potential lenders to assess their appetite for any future company recapitalisation.

Action

The Corporate Finance team identified a number of potential interested parties for the business, and undertook a full marketing process to both trade buyers and private equity investors. The shareholders opted for a management buyout (MBO) backed by Queen’s Park Equity (QPE). Following completion of the MBO, the Debt Advisory team worked with QPE and Encore’s management team to raise debt finance. After discussions with a number of lenders, Santander was selected to provide a debt package to assist Encore in their next phase of growth.

Outcome

With QPE’s support, Encore will continue to invest in its people, the Encore Training Academy, its technology platform, and compliance and support infrastructure, which is becoming increasingly vital as new regulation emerges across the sector. The supplier landscape is highly fragmented and QPE’s investment, further backed by Santander’s debt facilities, will support a combination of organic and acquisition growth opportunities.

“From the initial presentation, it was clear that the team do their research and understand the aspirations of their clients.” Stephen Chard and Neil Robinson, Founders of Encore Group