Successful Management Buy-Out of well-established niche manufacturer

Our South-East based client is a manufacturer and supplier of point of sale (POS) & cash management solutions, serving a wide range of industries for over 45 years. ?

In October last year, we were approached by the management to help fund their proposed MBO. They were under US ownership, and the US parent had decided to shut down UK and Europe Operations.

This would have meant the end of the business in the UK, which had stood on its current site for so long, including the end of 130 local jobs. Based in an area where industry has been steadily moving away from rather being attracted towards, closure would have dealt a serious blow within the community.

The project had numerous positive factors that we knew would attract investors and we were pleased to take this on. We got to work quickly on understanding the key factors, particularly relating to the terms that would work for management. The management team were always realistic on what was achievable and happy to accept advice. Delivering the right investor profile was as important as the terms of the deal.

We reached out to selected PE funds and private investors within our network and had an unsurprisingly large response rate. Three investors quickly met with our client; as often happens one stood out head and shoulders over the others. ?Their team were local, understood the issues, could roll their sleeves up and offered terms that worked for all parties. The Buy-out was completed in June of 2024. 90 jobs were saved. The new business allows both continuity of the site and a new freedom to go into the market and seek clients in different markets.

Our client comments... “Many thanks to BYC for finding the perfect investor for us. We are so pleased complete the MBO. We are now part owners in a business that we are passionate about. We have new business streams coming to us and believe the future looks bright for all concerned. We are very grateful for your support and will happily recommend you and your company to others looking for capital.”

Nick Young comments...?“We’re delighted to announce this completion, well done to the team - we wish everyone the best for the future.”