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How We Are Growing Our Client's Enterprise Value From £6m to £100m in 3-Years: A Buy-and-Build Story

  • sabbirrahman0
  • 15 hours ago
  • 2 min read

Langdon Capital is currently helping a UK manufacturing business, with £6m revenue and £1.5m EBITDA, acquire two competitors, with a combined £13m in revenue and £3m in EBITDA, for a total consideration of £14m, comprised of day1 cash consideration, performance related earn outs and rollover equity.


Involve us right from the start to get best results


Through leveraging our expertise, our client has been able to finance the double acquisition entirely through debt. We started working with the acquiror before they finalised both heads of terms, providing expert input on how to structure both bids to facilitate a 100% debt deal.


We then introduced an institutional investor who, thanks to our input into both heads of terms, agreed to finance 100% of both acquisitions in debt, subject to financial, legal and tax due diligence, and showed commitment to fund future acquisitions with an annual cadence.


Upon completion of the financing and SPA, our client's enterprise value will increase from £6m to £22.5m.


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Support throughout the journey


We will then turn our attention to supporting our client with structuring the heads of terms for, and debt financing of, their next larger acquisition to continue their buy and build strategy. Our client will seek an overall group exit to PE in 2-3 years, once they reach £10m in group EBITDA, for a group valuation of £100-140m, through leveraging our financing expertise and network throughout the journey. We will also run their group exit process to PE.


Their entire M&A growth strategy will be funded solely through debt, thanks to our expert input and network.


If you'd like to explore how we could exponentially grow your business' valuation and owner's equity in a similar way, feel free to contact us.


Enquiries


For further information, please contact info@langdoncap.com 


About the author


Sabbir Rahman has executed over £200 billion in notional value of debt, equity, M&A and derivatives transactions with global corporates, private equity funds and financial sponsor groups. He has 20 years’ experience, including at Langdon Capital, Morgan Stanley, Lazard and Barclays Investment Bank.


About Langdon Capital


Langdon Capital provides capital introductions services to growing owner-operated mid-market businesses and consulting services to global financial institutions and corporates.


CORPORATE FINANCE - Langdon Capital raises non-dilutive debt and growth equity for owner-operated mid-market businesses with EBITDA between £2 million and £20 million from private credit funds, banks, private equity firms, venture capital funds, corporate VC arms, family offices and venture debt funds. 


COMMERCIAL FINANCE - Langdon Capital assists property developers, property investors, SMEs and mid-market corporates obtain commercial finance facilities, typically from £1 million to £50 million in size, from a panel of over 130 specialist lenders and institutional investors. 


CONSULTING - Langdon Capital provides consulting services to global financial institutions and corporates facing quantitative finance, transformations, business strategy and treasury challenges.


contact info@langdoncap.com | visit www.langdoncap.com



This is not financial advice or any offer, invitation or inducement to sell or provide financial products or services or to engage in any form of investment activity.

 
 
 

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contact@langdoncap.com

Langdon Capital is a trading name of Langdon Capital Limited, a company registered in England & Wales with company number 12600771 and registered offices at 71-75 Shelton Street, Covent Garden, London, WC2H 9FF.

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Langdon Capital Limited is an intermediary and not a principal investor. Langdon Capital's activities are not regulated by the Financial Conduct Authority (FCA) as they fall outside the scope of PERG 2.7, "Activities: a broad outline," of the FCA handbook, or within its exemptions. Langdon Capital introduces Businesses and Individuals seeking capital for business purposes (collectively "Clients") to principal investors in debt and equity (collectively "Capital Providers"), with the outcome of such engagements being investment decisions made by Capital Providers, not transactions. Transactions are subsequently concluded directly between Capital Providers and Investees, without the involvement of Langdon Capital. The act of supplying information about Clients to Capital Providers does not imply, or extend to, making recommendations to Capital Providers and therefore does not constitute the regulated activity of ‘Advising on Investments.’ ​Langdon Capital only introduces Individual Clients to Capital Providers when exemptions to PERG 2.7 are met under the following conditions: (1) the introduction is made only in the context of a property loan; (2) loan proceeds are only to be used for commercial purposes; (3) the loan amount is greater than £25,000; (4) if land is used as collateral for the loan, then less than 40% of the land is used for dwelling purposes by the borrower; and (5) the borrower signs a declaration which provides that loan proceeds shall be used wholly for business purposes and that the borrower agrees to forgo the protection and remedies that would be available to them if the agreement were a regulated consumer credit agreement. Langdon Capital earns fees from its Clients and some Capital Providers and discloses commissions to its Clients.

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