McBrides, a member of The Corporate Finance Network based in Kent and South East London, has advised the shareholders of a recruitment business on a Management Buy-Out (MBO).
McBrides Corporate Finance Partner, Nigel Kimber, was approached by his client as they sought advice for disposing of shares within their business. The recruitment business included a management team who were keen to stay with the business and for that reason, an MBO was the preferred option.
The sellers retained a 40% holding in the newly formed group and will remain in the business to build towards another exit. The McBrides team also advised on an Enterprise Management Incentive (EMI) scheme for current and new employees to drive future growth. An EMI, is a government‑backed, tax-advantageous share options scheme. It is mainly used by small to mid-sized UK businesses looking to share their successes with their team as their company grows.
The outcome was a successful completion and the business is well geared for achieving its next growth objectives.