Long standing members of The CFN, Hunter Gee Holroyd, have proved that impressing in a deal can reap long term rewards, in a recent management buy out.
Mark Grewer, of HGH based in York, first started discussing future plans with the client, a business in electric contracting, over three years ago. When discussing exit strategy for the majority shareholder, it became apparent that there were two main options; an internal management buy out or an external business sale.
Although it was clear that there were 2 managers who may be suitable to take over the running of the company, this discussion was followed by a long period of inactivity from the client. However, after a number of years, HGH were asked to carry out a company valuation, which subsequently formed the basis of a meeting with Quality Solicitors Burn & Company, to formulate Heads of Terms and agree price and structure.
A holding company was set up to retain any excess cash, in order to assist the management team to purchase 70% of the shares, with the remaining balance agreed to be paid over three years.
The initial purchase was completed last month, with monthly payments of the deferred amount to follow. The management team were so impressed by HGH's handling of the deal they have asked them to carry on looking after the company's financial affairs in the future.
