Case study: Acquisition finance

A Midlands-based commodity trader and processor wished to acquire its principal supplier.

Retained to assist the acquirer finance the acquisition and the required working capital.

Worked with management team to determine the quantum and structure of finance needed and to formulate proposals to put forward to prospective backers.  Then in successfully negotiating an integrated finance package which enabled client to complete the acquisition.

Work included: -

• Carrying out an appraisal of the existing and target businesses, and developing a business plan in conjunction with the management team;

• Determining a suitable financing structure and formulating a funding proposal;

• Making approaches to private equity houses and banks and negotiating the required finance; and

• Advising the board of directors generally throughout the process, leading to the successful completion of the transaction