Excelsior Panelling Systems Ltd Acquired by Management Buyout

Excelsior Panelling Systems Ltd

When the owners of Excelsior Panelling Systems Ltd were planning their retirement, a Management Buy Out was the obvious strategy. Two key employees (Richard & Steve) were offered the opportunity to purchase and a mutual contact introduced Paul Dodgshon from our Manchester office to support them.

Neither Richard nor Steve had been involved in an acquisition before, so we initially set a framework of goals and targets they wanted the end deal to achieve. This we would refer back to frequently to check we were on track.

Our next step was to undertake a benchmarking exercise of the business, using a Value Builder Score. We suggested this was completed jointly with the buyers and vendors, so that a common view of the business could be established.  This is possible in an MBO, unlike other acquisitions, as the process should be collaborative.

The benchmarking exercise clearly identified the strengths and weaknesses of the business and allowed us to formulate a deal structure and the financing required to fund it.  We were then part of the deal management process supporting, problem solving and seeing things through to completion.

What the MBO team say

Having not done this before, we didn’t know how to approach the discussion around value and deal structure. Paul’s technical expertise were crucial, but what I valued most was the honest advice and guidance. it was clear our interests were always first and he demonstrated this several times during the negotiations.

Richard

MBO’s are a difficult process and Paul helped us by being an expert and a counsellor, enabling us to negotiate hard but fairly with the vendors whilst maintaining the essential ongoing working relationship. We are now both excited about the opportunity we can deliver at Excelsior.

Steve