Debt Advisory

Berg Kaprow Lewis LLP

Adviser to CBPE on a debt raise to fund the primary management buyout of BKL, a leading SME accountancy firm.

The deal

Our Debt Advisory team has advised London-based mid-market private equity firm CBPE Capital on their investment into Berg Kaprow Lewis LLP (BKL), a leading SME accountancy firm with over 200 employees.

Based in North London, BKL is an accountancy firm that provides an exceptional level of service to over 5,000 clients nationwide with strengths in property, financial services, and tax. The business has a strong culture and clear values, reflected in their recently obtained B Corp status – the first accountancy firm of their size to do so, obtaining a first-time pass and Impact Business Model status, reflecting their focus on employee development.

The transaction will support continued investment in people and technology, allowing BKL to expand the breadth and depth of services offered to clients, in addition to pursuing strategic acquisition opportunities.

The investment in BKL continues CBPE’s successful track record of partnering with people-led professional services businesses and their management teams, including its current investment in Centralis.

In support of the investment, the FRP Corporate Finance debt advisory team were appointed to assist in arranging a committed acquisition facility to help facilitate management and CBPE’s buy-and-build strategy in the sector; together with a revolving credit facility to support the working capital requirements of the growing platform. The team, led by Partner Simon Sherliker and Director Stuart Sweeney, and supported by Managers Karris Giani and Brad Gayler, advised on all aspects of the debt raise including the preparation of detailed briefing materials and negotiation of a bespoke covenant package reflecting the staged drawdown of debt facilities. Following a competitive marketing process the business partnered with HSBC for the provision of senior debt.

Simon Sherliker, Partner at FRP Corporate Finance, said: “We have a strong relationship with CBPE having now supported the team on five debt raises in the last two years and are delighted to have been able to support them through this latest opportunity. Investing in BKL represents an exciting opportunity to further expand the business’s high-quality, loyal client base through continued organic growth and strategic M&A.”

Stuart Sweeney, Director at FRP Corporate Finance, said: BKL and CBPE represent a well-suited partnership to identify attractive bolt-on opportunities that scale the business, whilst maintaining its unique cultural identity. The debt facilities structured with HSBC will support the business through its next phase of acquisitive growth.

Adam Richardson, Director of CBPE, said: “We had no hesitation in appointing FRP Corporate Finance to support us once again on this deal.  Simon, Stuart, and their team are trusted partners and helped us secure a financing package that will support the ambitious plans of this growing platform.”

“We are delighted to be backing Lee and the team at BKL. BKL’s strong employee culture and values, empowered by investment in technology, drives an exceptional level of client service. The SME accountancy market is going through a period of transition and BKL is well placed to make the most of the opportunities to grow both organically and through strategic acquisitions. We are excited to be partnering with BKL as they embark on the next stage of their journey.”

Deal summary

Date:

April 2023

Sector:

Business services

Deal type:

Buying a business

Deal size:

Undisclosed

Investing in BKL represents an exciting opportunity to further expand the business's high-quality, loyal client base through continued organic growth and strategic M&A. Simon Sherliker Debt Advisory

Related team

Simon Sherliker

Simon Sherliker

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Stuart Sweeney

Stuart Sweeney

  • Director
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Brad Gayler

Brad Gayler

  • Manager
  • Debt Advisory
  • London West End