Castle has raised cashflow funding for its client, a long-established IT support and managed services business, successfully securing a seven figure cash flow loan from Barclays Bank, to effect a partial MBO. The MBO team, alongside the remaining founder, has ambitious plans to grow the business significantly over the next few years.
Castle ran an efficient process involving high street banks, challengers, and tier 2 lenders to secure competitive offers from multiple funders: with a great history of profitability and strong customer relationships, the business attracted strong support for the transaction. Ultimately, Barclays’ cash flow team were able to propose a funding structure that suited the MBO team’s requirements.
The company’s founder and Managing Director commented: “Castle’s team were instrumental in our restructuring and fundraising process. Their professional advice and strategic guidance greatly helped with the positioning of our company, allowing us to attract the right profile of financial backing for our project. I wouldn’t hesitate to recommend their services.”
Victoria Ansell from Castle Corporate Finance said: “This is a great result for the business, enabling the MBO team to invest in the future growth. The business drew a lot of interest from a range of funders, but the key was to ensure continued stability and to find a long term supportive funding partner. Barclays’ terms were very competitive and it was great to work with their dedicated cash flow lending team. I’m delighted for the whole team and wish them all the best.”
The business was advised by Castle Corporate Finance, led by Director, Victoria Ansell, legal advice from Keith McAlister at London 3CS, and tax support from Moore Kingston Smith. The Barclays team was headed by relationship director Kevin Rose, and cash flow team member Cathal Walsh.