Manufacturing company uses ABL to fund Employee Ownership Trust
Industry: Manufacturing
Product: Asset based lending with IDeal™
Facility size: £2.2m
Established in 1977, this manufacturer and printer of carton board packaging has adapted throughout the past four decades to develop a cutting-edge design and print studio.
The majority shareholder of this profitable company needed to put a succession plan in place ahead of retirement and approached Close Brothers to assist with the funding required for a successful transition to Employee Ownership Trust.
Our team worked to create a finance solution that would provide sufficient headroom with an Asset Based Lending (ABL) package of £2.2 million.
ABL works simply by blending invoice finance, releasing working capital tied up in unpaid invoices combined with funds secured against stock, property or plant and machinery. Leveraging this value will allow a phased change of ownership, ensuring available cashflow is retained throughout.
Having an appropriate exit strategy with a robust succession plan allows the management team to continue successfully. Aligned with a tailored financial solution to support this transition, the company have the required flexibility for the future growth plans under a new ownership structure.
