The Challenge
A leading recruitment firm specialising in supplying temporary labour to the construction and blue-collar sectors faced a pivotal moment. The company’s director was stepping away to pursue other ventures, leaving the business in need of a seamless transition. The new leadership, headed by the long-serving CFO, sought a financial solution to fund the management buyout (MBO) while ensuring business continuity and stability for its $140 million annual turnover operation.
The Solution
To address these challenges, PFBS worked closely with the CFO to design a tailored debtor finance solution. This approach unlocked the necessary funding to:
Settle Existing Loans: The incoming lender provided sufficient funds to clear the outgoing director’s financial obligations.
Support Legacy Obligations: Surplus proceeds ensured that any outstanding liabilities were addressed effectively.
Empower the New Owner: The equity raised through debtor financing equipped the CFO to lead the company into its next phase of growth.
By leveraging the company’s debtor book as collateral, the new funding arrangement offered the liquidity and flexibility needed to manage the MBO smoothly.
The Outcome
The MBO was a resounding success. The incoming owner, a trusted leader with over 10 years of experience in the business, retained the entire workforce, fostering continuity and stability. The team, already deeply invested in the business’s success, now had the opportunity to grow under familiar and capable leadership.
The debtor finance facility not only enabled the ownership transition but also provided a consistent and reliable cash flow. This gave the new owner the confidence to meet critical obligations, such as statutory requirements and payroll, while focusing on driving the business forward.