Management buy-out of a facilities services business
A cleaning and facilities contractor sold to its own management team, with vendor financing and a staged handover.
Size
S$8m revenue
Buyer
Management buy-out
Time to close
6 months
Outcome
Vendor loan over three years, full handover in 9 months
The owner had two credible internal successors and cared more about the two hundred staff than about maximising the headline number. A trade sale would likely have paid more and would have meant consolidation.
The deal was funded partly by a bank and partly by a vendor loan repaid over three years, secured against the shares. Progressive wage and CPF compliance was reviewed thoroughly before the bank would lend, which is normal in this sector and worth doing early.
(sample entry) Illustrative of the deals we work on, pending publication of live figures.
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