Management Buyout Of Learning And Development Provider

BUSINESS OVERVIEW

Lean Education and Development Limited (LEAD) is a national provider of accredited vocational learning and development programmes. Established in 2008 and headquartered in the West Midlands, LEAD has developed a unique government-funded programme which supports client with their on-going continuous improvement programmes by training employees in live activity. The company is recognised as a class leader in its field – both in terms of its business and delivery models and in relation to the quality of its delivery staff.

The business was originally set up by Chairman Gary Redmonds in 2008 as part of the Leaping Man group of training companies and has grown significantly over the last eight years.

OUR ROLE

Over a 24-month period, Orbis worked closely with the shareholders to explore a number of options including a potential trade sale. It was concluded that a MBO would be the best route forward for both the exiting shareholders and the exiting management team.

Funding to support the MBO came from Finance Birmingham’s £56m Mezzanine Fund, supported by the Government’s Regional Growth Fund and Royal Bank of Scotland’s Corporate Transactions team.

Specifically, Orbis:

• Worked with shareholders to understand the business and their aims
• Developed a detailed three-year profit and loss, balance sheet and cash flow forecast
• Developed an appropriate funding structure and approached relevant banks and alternative investors
• Led the preparation and review of the financial due diligence on behalf of the shareholders
• Worked alongside LEAD’s 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