The Challenge
An architectural design company based in Manchester was introduced to PMD by a leading firm of Northwest accountants. The two owners had been presented with the opportunity to expand their portfolio by buying out a competitor who was retiring.
The acquisition presented several challenges as both companies didn’t have a straight forward invoicing process as well as the fact that the retiring owner had never required funding and therefore had their own unique approach to invoicing that was unclear and lacked efficiency. Due to this, the lender was unable to gain sufficient information to make an informed decision on whether they were able to directly lend money against the invoices of the target business.
The Solution
Mark Millhouse, Head of Invoice Finance at PMD evaluated the transaction and was able to identify a plausible solution; securing an invoice finance facility against the clients existing invoices to raise the funds required to acquire their competitor. Working closely with PMD’s panel of lenders, Mark was able to secure a £150,000 confidential invoice finance facility, enabling the client to move forward with the acquisition.
The Result
By thinking outside of the box, PMD enabled the client to successfully purchase the business and once the deal had been completed they could then improve internal systems, streamline operations and better position themselves for future acquisitions. The client now has a solid foundation to leverage the newly acquired business to raise funds for future growth in the civil engineering and groundworks sectors.
"It's always a pleasure to assist in these transactions where the initial way forward isn’t obvious and this is where working alongside PMD can add real value to a management team."