Bath lender supports MBO at lighting business
A Bath based lender has backed a power and emergency lighting business which underwent a management buy-out.
Linnet Technology Ltd, is a well-established Scottish supplier of uninterruptible power and emergency lighting.
Operations manager Paul McAtee agreed to put plans in place to buy out the original directors who were preparing to leave the business.
Paul reached out to his accountant and business adviser Marc Vosilius at French Duncan to discuss potential funding options who suggested Ultimate Finance.
Marc said: “The business had a very clear succession path for when the two directors were ready to move on.
“Paul had done a lot of groundwork and already had cash reserves to help facilitate the buyout.
“However, that still left a significant amount needing to be raised before even thinking about additional liquidity to keep operations going post-transaction. It was important that I worked with my client to quickly find them a funding partner that could support the MBO but also the future cash requirements.”
Marc reached out to Ultimate Finance to discuss whether they could provide access to the funding and ongoing support.
After an initial meeting with regional director John Davies and head of sales Ronnie Stokes, Marc shortlisted a high street bank and Ultimate Finance as two viable options to explore further.
John said: “We were delighted to be considered as the business’ new funding partner, and knew that we had the experience, resources and dedicated support necessary to support the MBO and the team on the other side of the transaction to help them keep moving.”
Having been chosen as the preferred funder, Ultimate Finance provided an Invoice Finance facility to release more than £500,000 from the value of invoices yet to be paid to allow for the MBO to be completed whilst also ensuring there is additional working capital from day one to prevent any unnecessary delays of regular activities.
A £50,000 cashflow Loan was also offered as part of the facility as additional cashflow support if needed.
Marc added: “Ultimate Finance have proven that they truly understand how to tailor funding to a particular client and their requirements, and I am delighted to have introduced Linnet Technology Ltd to them.
“With their support and the additional funding they are providing, the company will not see any interruption to their trade and there will not be any changes to the way they operate. The whole team is delighted and can look forward towards achieving their growth ambitions.”
