The acquisition of Oaklands Plastics was funded by a combination of cash, bank debt and invoice discounting. Management Buy-Ins are notoriously challenging to execute but this transaction had characteristics that allowed it to buck the trend. T3i brought together individuals who had a range of skills and were a very credible team – in particular the day-to-day operations would be overseen by Keith Tudor, who had over 25 years’ experience in senior executive roles within the manufacturing sector. Also critical to the success of the management buy-in was the relationship between buy-in team and the vendor, and this was expertly managed by Steve Pratt. Importantly, the involvement of Cattaneo and the way we ran the process gave both the buy-in team and the vendor confidence on the deliverability of the financing.
We worked alongside the team at T3i to project manage the fundraising process. Using our knowledge of the debt market we worked to source a finance package that would support the deal, running a process to negotiate and secure a combination of invoice discounting and cash flow loan that was in line with our initial assessment of debt capacity. Funding was provided
by Aldermore Bank. We prepared a financial model of Oaklands to support the funding structure, which included a monthly model with dynamic sensitivity analysis to allow a range of scenarios to be assessed by the management team and funder. As the transaction approached completion, our role was expanded to include facilitating the negotiation of the commercial points and project management of the transaction, including the completion mechanics. We were instrumental in driving the transaction over this crucial period and ensuring that completion progressed smoothly.
WHAT OUR CLIENT SAID:
“The Cattaneo team have been working with me to look at acquisitions over the last few years and they have been very supportive throughout this time. When it came to executing this transaction they were responsive, knowledgeable and had a wide range of connections in the funding market, which was key to completing this deal. Their proactive approach drove the transaction forward and generated the momentum needed to get it over the line”.
Keith Tudor, Director T3i Holdings