Aberdeen Corporate Finance
Management Buy-Out: Engineering Firm

Management Buy-Out: Engineering Firm

Manufacturing

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The Challenge

The management team of a successful precision engineering company wanted to buy out the retiring owner. The business had strong cash flows but the purchase price of £6.5M required creative structuring.

Our Solution

We arranged a multi-layered funding package: senior debt of £3.5M, mezzanine debt of £1.5M, vendor loan notes of £1M, and equity investment of £500K from the management team.

The Outcome

The MBO completed successfully within 3 months. The management team achieved full ownership and the business has grown 25% in the two years since the buyout.

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