Case Study #2 – Precision engineer MBO
Since February 2019 we have been working with a precision engineering business in the Droitwich Spa area, its a great SME outfit and was successfully bought out in an MBO in January, we came on board via a Private Equity house who required a Finance Director to be in place within 30 days (which is a common occurrence) fortunately we have a number of great Portfolio FD’s on our books who need extra days to complete their diaries and are able to support a client in that area of the West Midlands.
The client has a really interesting model, they build coating machines for national mints principally for use with commemorative coins, the machines are all for export and have a long build cycle together with a repeat order / replacement cycle of 9 months and 10 years respectively. There is no credit risk as their clients are the ones printing the money!
Initially we worked two days per week, but now the finance function and business has settled down we are working for them a day per week, providing help and guidance as well as supporting their monthly production of Management Accounts, annual Statutory accounts and a pack for the Private Equity House.
As our FD is their Finance Director she is listed at companies house and takes a full part in board meetings, budget planning and strategy. The business has a £5m turnover and whilst the PE Houses requires a details board pack, the Management Information is fairly straightforward, with an emphasis of sales forcasting due to the lumpy nature of their machine sales which can be between £500K and £1m each.
The relationship is an ideal long term one, we provide support and the MBO keeps on track for the benefit of the team, the business and the private equity house plus the Portfolio FD we have working with them is really enjoying the role.
This is just the sort of Win Win situation that works perfectly for FD Capital, if you are preparing an MBO or working with a Private Equity house then reach out to use today and we can replicate the above successful model for your business. What has been great about this role is that we have built up a strong relationship with the PE House concerned.
We are always on the look out for new clients who we can work together with, our preference is a long term relationship and the Private Equity space often provides just that.
Following on from picking up this opportunity we have made an effort to build up our relationships with PE houses. We speak to our existing contacts around once per month and try to add new contracts each week as we go along. Opportunities come through regularly now as a result of our networking activities but even though PE houses and Venture Capital funds have a large sums of money invested their scale means that they only have limited numbers of deals active at any one time and often their requirements are very specific, for example they may require property or engineering experience. As our database of candidates grows we are adding CV’s all the time and building up our contacts so whatever the requirements a PE house has we can match up candidates to them easily.
Opportunities such as this MBO come along regularly, they do have finite life cycles however as funding requirements are usually time limited and once a loan is repaid there is then no longer the requirement for the same level of time committment if any involvement is required going forward.
Some further information is included below relating to specific areas where members of our team operate from or are based out of.
Telford Finance Director – located in Shropshire an ideal location for Telford and Shrewsbury based clients.
Shropshire Finance Director – A very experienced FD with 20 years of debt and equity funding experience immediately available.
Wolverhampton Finance Director – Highly experienced team members who can cover the wolves area.
Birmingham Finance Director – based in our second city team members ideally located to service the Birmingham and nearby areas.
Manchester Finance Director – We now offer FD’s and CFO’s in the Manchester area and up to Preston in Lancashire.
Leeds Finance Director – We now offer FD’s and CFO’s in the Leeds area.
London Finance Director – We have a number of talented experienced FCA’s living and working in London ideal for your business.
If you are a Private Equity House or Venture Capitalist looking for Finance Directors or CFO’s or an FD/CFO yourself, then reach out to us as we always looking for additional talent to join our team.
FD Capital Recruitment has built up an impressive capability particularly in the Private Equity space, which means if you are a business or Private equity house looking for a Part-Time FD or a Full-Time one, then it makes sense to talk with us. We have specialists who are very strong with E-Commerce businesses, turnaround specialists and as mentioned team members with a lot of experience with fund raising at the Seed stage, through to A series fund raising rounds. Our Finance Directors and CFO’s have considerable experience with corporates rescues, if you need to raise additional finance, to restructure existing debt or to refinance your business, then our team can help, we can prepare a forecast model, the necessary supporting narrative and then introduce you to funding professionals who can work with your business to raise the necessary funding.
Recently we have been recruiting CFO’s as well as FD’s so we are really becoming seen as a niche provider in the senior finance recruitment space.
Specialties include: finance director, financial director, part-time finance director / FD, exit, disposals,commercial finance, due diligence, part-time finance, outsourced finance, financial management, interim finance, CFO, FD, FC, business partner, ICT, venture capitalist, VC, venture capital, PE, private equity, angel investment, NED, non-exec director, acquisitions, reorganisations, turnarounds and growth situations. All with a record of developing and maintaining strong working relationships.
If you are looking for a Part-Time Finance Director or Portfolio FD for your business make sure to reach out to use today.