Management buy-in/buy-out of one of the UK’s leading IT service providers
Esteem designs, installs, supports and manages IT infrastructure for businesses between 250 and 20,000 users. Esteem provides services to manage the entire IT infrastructure from servers and desktops to applications, data and networks. Supported by regional offices throughout the UK, the company employs more than 100 staff and has an annual turnover in excess of £30 million.
I am confident that with the investment this deal has secured, the huge potential of Esteem in the IT services market can now be realised. The company already has great management combined with a proven track record and I am looking forward to working with the existing directors as we seek to expand through both organic and acquisitive growth.
Joe Connolly, CEO
We worked with Joe Connolly an experienced and highly credible MBI candidate in the TMT sector. Joe previously held the position of European Managing Director at Synstar, having successfully completed an MBO from Granada Computer Services, he went on to float the company before exiting the business prior to its sale to Hewlett Packard.
Orbis worked with Joe and identified Esteem as a target vehicle for a buy and build strategy. The vendor had been approached by a number of interested trade parties and we successfully competed to acquire the business working with the internal management as well as Joe Connolly.
- Worked with Joe Connolly to review the market and identify potential targets
- Developed an appropriate funding structure and approached relevant banks and alternative investors
- Led the preparation and review of the financial due diligence
- Worked alongside the business’ tax advisor to ensure the transaction was structured and completed in the most tax efficient manner
- Worked alongside the legal team to negotiate suitable legal agreements
Lloyds TSB Corporate Acquisition Finance provided £3.75 million of senior debt funding for the deal, while Lloyds TSB Commercial Finance provided working capital finance.