In this case, Enness was approached by an ambitious business owner looking to scale their business for exit within the next 10-15 years. Their plan to achieve this was simple: to accelerate growth and maximize value by strategically acquiring underperforming businesses that would significantly benefit from the client's expertise and efficient infrastructure already established across their thriving group of businesses. It was through creating these efficiencies that the client sought to add value, increasing profit margins significantly.
Being fundamentally risk-averse (as with most business owners), the client sought a complex lending structure to maximise their debt to asset ratio, while still provided sufficient security for the lender. It was here that we hung our hat with regard to this transaction.
Moving quickly, Enness successfully negotiated a circa 65% debt-to-equity structure, with an element of differed consideration to ensure the fundamental figures stacked up in the most suitable way for all parties. Furthermore, Enness recommended a product whereby the cost of borrowing was fixed for the term of the loan, yet the business maintained a flexible repayment profile, allowing for overpayment in line with the expected uplift in performance post-acquisition. This would reduce the term of the loan, allowing for a faster integration process.
Enness has access to over 500 Lenders from across the market and can categorically provide a comprehensive overview of all available options on the market, ensuring you are best informed on the cost of funds, structure and other special conditions that can certainly benefit your business.
This client now has access to a bespoke debt facility whereby they have the best of both worlds: a fixed rate, fixed cost borrowing figure with the flexibility of overpayment at no additional fee. This will fundamentally enable them to manage their cash flow better and remain agile as they look to integrate their new acquisition into their already thriving group of companies.
If you or your clients are interested in exploring acquisition funding or, indeed, are considering your succession planning, please get in touch to explore all of your options.
Information contained in our case studies is for market and illustrative purposes only. In some cases, these may be made up of multiple cases and are for illustrative purposes only.
Some case studies are made up of enquiries that have come into the business, not all business completes, and the posting of a case study does not represent a completed piece of business.