PDT advise on the management buy-out of Factor 21
Published: 27 September 2016
"We are delighted to have found the right investment partner in Mobeus to assist us with this buy-out and help us develop and expand the business. We are also delighted that Jonathan Gregory will be joining our board along with David Robertson who will be our new Chairman. I would like to thank Noel, Rebecca and the team at PDT for listening, analysing and guiding us through this process with professionalism and care. I’ve never seen so much paper in my life so it is reassuring that they know where it all goes!"
David Tilling, Managing Director, Factor 21
Factor 21 has been operating in the invoice finance market since 2001, its founding members, Graham and Nigel Ethelston, having previously owned Isis Factors which was sold to London & Scottish. Neal Errington joined the business in 2008 with Dave Tilling and Darren Cottenden coming on board in 2013 to further consolidate the business and take it through its next growth phase.
Factor 21 has become a very successful and highly respected invoice finance business covering the UK market from its operating centres in the Thames Valley and Manchester. The combined business now has in excess of 350 clients and staff of 50 employees.
Noel Ruddy, Head of Corporate at PDT, said, “This was an interesting transaction not least because it enabled us to draw on our extensive knowledge and experience of the ABL sector. As a result, we were able to use our invoice finance expertise to assist the parties to reach agreement on a number of issues specific to the business of factoring companies. This is the first investment by Mobeus in the sector and I am confident that with such a strong and committed management team it will be a great success.”
Rebecca Glazebrook, who led the corporate team, said, “We were thrilled to have been given the opportunity to work with Mobeus and the management team at Factor 21. The transaction presented us with a number of interesting challenges on which we were able to provide constructive solutions. I am sure the business will go from strength to strength.”
“Factoring is an industry we know well and as such we value real specialist insight. Noel and Rebecca brought the perfect combination of industry knowledge and commercial skills to the transaction and played a key role in our ability to close the deal.”
Chris Price, Partner, Mobeus Equity Partners
The PDT team was led by Noel Ruddy and Rebecca Glazebrook assisted by Mark Diamond, Rosie Haines and Aysha Hussain (Corporate), Bhavna Patel (Employment) and Craig Burton (Property).
Corporate Finance advice was given by Adam Wardle and his team at Wilson Partners. Jonathan Gregory and Chris Price led the investment team at Mobeus assisted by Dominic Draysey.
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