Team advises Graphite on Ten10 MBO funding

Background

Ten10 is a leading quality engineering and software testing services provider based in the UK and US, providing support managing the commercial and financial risks involved in developing and integrating software. The company has more than 250 staff supporting a large and diversified customer base of approximately 100 blue-chip organisations across the financial services, retail, legal and public sectors. Our Debt Advisory team was approached to advise Graphite Capital on raising debt to support a secondary management buyout (SMBO) following the strong growth of the company.

Action

Our Debt Advisory team were engaged by Graphite Capital to lead the process of raising funds to support the investment into Ten10, provide for future acquisitive growth, and working capital facilities. This involved presenting the opportunity to potential lenders, structuring the deal, securing credit approvals, negotiating terms, and handling all the banking legal documentation.

Outcome

In the two years prior, Ten10 had increased revenues by 28 per cent to more than £26 million, and the management team looked to reinvest a substantial percentage of its proceeds alongside Graphite Capital as part of the deal. The team successfully advised Ten10’s private equity investors on a debt raise to back the MBO of Ten10, all within a four-week timeframe.