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Case Study 4
The Management Buy Out
Annual Turnover $140,000,000
The Problem:
This recruitment firm focuses on placing temporary labour into the construction and blue-collar industry.
The Solution:
The CFO of this firm approached PFBS for funding options to assist with the management buyout of the business, which came about from the director wanting to take on other projects. A debtor finance solution was the ideal option. By establishing new debtor finance arrangements, the incoming lender has provided funds to sunset the current owners existing loans and provide surplus funds (proceeds) to meet legacy obligations and equity to start the former owners’ new journey.
The Outcome:
The new owner has retained all the staff of the business and provided them the opportunity to own and operate this business which has worked in for 10 years. The consistency of operating a debtor finance facility provides confidence to the new owner to meet their statutory and payroll obligations.
