Funding provided through Invoice Finance and  Asset Based Lending can be crucial to a successful Management Buy-Out (MBO). WithAcquisition Finance, more funds can be released than through a conventional overdraft and without diluting equity, to help you turn your ideas into reality.

For example, Mr Smith had been working at a well-established printing company based in Sussex for the past 20 years. The present owner, who was also the MD, was due to retire, but he was unsure as to what to do with the company. Mr Smith saw an ideal opportunity to acquire a profitable company, but needed to secure funding in order to execute a Management Buy-Out.

It was important to find a financial partner that appreciated that there needs to be a good balance between fixed-asset finance and current asset finance. Furthermore, debt finance alone is often not enough to acquire a profitable business. GE was the right partner, offering extensive experience and a holistic approach towards financing the deal. An Invoice Discounting facility was the the first point of call, bolstered by the leveraging of other key assets including stock, machinery and the factory itself. Furthermore, a term loan in the form of cash-flow finance was provided for the vital top-up.

Our experienced M&A team offers clients financial advice in strategic issues including MBO/MBIs, mergers and acquisitions, takeovers and strategic alliances.

For more details on one of our recommended products for your business need, call us now on 0800 85 86 87.