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Fulfilling MBO and growth ambitions with a £1M funding facility – WG Carter’s story
WG Carter Ltd specialises in the renovation and construction of high quality residential homes across Oxfordshire and the Cotswolds. In addition to luxury new build projects, the team carefully renovates beautiful country houses and restores them to glory, bringing them up to date with the latest services and decoration, whilst preserving their history and features for future generations.
Having made the decision to embark on a management buy out, the management team invited ThinCats to meet them in order to gain a close understanding of their objectives with a view to delivering a bespoke funding solution. It was clear early on in the process that this facility would need to go beyond meeting the initial share purchase consideration and would have to deliver sufficient headroom to support the management’s vision for growth, with the inherent flexibility to give the business the freedom to thrive going forward.
ThinCats provided a £1m facility designed specifically to meet the key objectives of the management team with a distinctly innovative approach to structuring the transaction, as James Robertson, Managing Director of WG Carter Ltd explained:
“ThinCats has enabled us to gain a significant stake in the business as a result of funding our management buy out. The new loan facility also provides us with the flexibility to grow the size and scale of projects we undertake, with the initial target of progressing from undertaking seven to nine projects concurrently.”
“The team at ThinCats spoke to us in detail regarding our requirements and structured the transaction with a capital repayment holiday for the first 12 months, whereby we pay interest only. This additional flexibility ensures that we are able to build our capital reserves, whilst avoiding the need to put an additional burden on the business too early in its history. Our strategy is one of controlled growth, whilst paying off the facility and loan notes prudently as soon as we can,” he continued.
“I really can’t recommend ThinCats highly enough in enabling this transaction to happen as smoothly as it did. Everyone I have dealt with has been very cooperative and easy to work with. They reacted quickly, delivered their promises and didn’t deviate from what they offered. The due diligence process was quick and straightforward and was not onerous at all, unlike the requirements mentioned by some of the other traditional funders we had spoken to.”
Dave Sherrington, Business Origination, London & South East at ThinCats, commented: “It always gives us immense pleasure to enable management teams to achieve their ambitions of ownership and business growth. We are delighted to support WG Carter and the management team with this MBO transaction, which has been structured in a way that will enable and encourage the business to prosper. We look forward to building a close relationship with the team to further support their growth aspirations. This type of deal underlines our appetite for delivering tailored event-driven facilities that make a substantial difference to the businesses we back. At ThinCats, we don’t follow the crowd, we follow our convictions to make deals happen.”