Case study: Equity Release (Private Equity)

Retained by owners of a successful and rapidly growing niche domestic insurance company to seek a partial sale of their interests.

Conducted business appraisal and made approaches to private equity houses and after identifying a number of interested parties led negotiations with one prospective institution who wished to take a substantial stake.

Work included overseeing the conduct of the transaction including: -

• Preparing a spreadsheet-based financing model to assist in the financial engineering and undertaking sensitivity analysis;

• Advising on valuation;

• Bringing in and co-ordinating the role of a tax consultant to ensure the tax efficiency of the transaction;

• Preparing and negotiating heads of agreement;

• Making approaches to prospective backers and assisting evaluate and negotiate offers received;

• Advising in the formulation and preparation of the strategic plan and funding proposal; and

• Advising the management team on the implications of the transaction.

The equity sale was successfully concluded based on a valuation of £20 million.