Birmingham Advisers Lead The Way In Management Buyout Of IT Services Firm

A group of Birmingham advisers have teamed up to complete the management buy-in/buy-out (BIMBO) of one of the UK’s leading IT service providers.

Esteem Systems has been bought by existing directors Alistair Kitching, Gary Pearson and Tim Loughlin in a deal advised by Kroll Corporate Finance, and funded by Lloyds TSB Corporate Acquisition Finance and Lloyds TSB Commercial Finance.

London-based private equity firm Primary Capital also played a leading role in the deal.

The opportunity to acquire the business came about when existing CEO and founder Richard Doyle decided to retire, along with fellow directors David Ogden and John Atkin.

The new management team will be joined by incoming CEO Joe Connolly and Rob Foreman, who has joined the Esteem board as a representative of Primary Capital.

Prior to joining Esteem Systems, Joe was the European managing director for Synstar. Having successfully completed a MBO from Granada Computer Services, he went on to float the company before exiting the business prior to its sale to Hewlett Packard.

Based in Leeds, Esteem Systems was founded in 1985 and has experienced rapid and sustained growth in the IT services market, specialising in providing end-to-end IT infrastructure services and solutions.

Supported by regional offices throughout the UK, the company employs more than 100 staff and has an annual turnover in excess of £30 million.

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.

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 have worked with Joe for the last three years supporting his buy and build strategy to create a significant IT services group. Esteem provides the perfect first acquisition with a respected brand and a strong management team and will create the platform for several complementary acquisitions over the next 18 months.

Toby Arrowsmith, Manager at Kroll Corporate Finance

The acquisition is a positive move by the management team to secure the future of a business that has strong market position within its respective industry, and as such can now build upon the success that has been achieved to date.

Simon Woodcock, Senior Regional Manager at Lloyds TSB Commercial Finance

The company has been passed on to a team of managers that have the motivation, dedication and skills set to drive the business forward. We will be watching the progress of the company with great interest.

Mark Bolshaw, Director at Lloyds TSB Corporate Acquisition Finance

The Leeds office of accountancy firm Deloitte carried out the financial due diligence, PMSI did the commercial due diligence and law firm Eversheds acted as legal adviser to Lloyds TSB.

For more info:

Related Case Study

Registered in England No.9098428 Registered Office: One Eleven, Edmund St, Birmingham B3 2HJ
The statutory directors of Orbis Partners Ltd are Chris Gregory, James Grenfell, Gary Ecob and Shah Zaki.