Orbis Partners Provides Financial Due Diligence to Support the MBO of Siamo Group
The directors of Siamo Group completed a management buy-out of private equity investors Key Capital Partners (KCP) to become independently owned.
The group has been backed by Clydesdale Bank to allow the business to enter its next phase of growth. Orbis Partners completed the financial due diligence for the transaction, reporting directly to Clydesdale Bank.
Siamo Group was established in 1984 and is a leading provider of both temporary and permanent employees such as goods drivers, machine supervisors and warehouse staff across various sectors. The group also provide training to ensure businesses receive highly-skilled and knowledgeable employees.
In 2007, KCP invested £4.3m to Siamo Group which was then named Templine. At this time the business had annual revenues of £16m. By 2011 this had doubled and had doubled again by 2015. The group’s most recent financial results show revenues of nearly £90m, with further growth expected in 2018 to show revenue in excess of £100m.
Orbis undertook a detailed investigation of the historical, current and forecast financial performance of Siamo Group. Working closely with Clydesdale Bank, Orbis helped to form a view on the underlying trading of the business as well as modelling and evaluating various different future scenarios for the business and the impact this would have on the business’s working capital requirements.
We were very pleased with the work undertaken by Orbis Partners. They took the time to really understand the business and to challenge us on the key assumptions underpinning our future projections.
Neil Himsworth, Finance Director
Siamo is a long-standing customer of the Bank which we were delighted to support with another round of financing. The business is still growing rapidly and, as well as we know the business, the Orbis report was vital to understanding the complex working capital dynamics to ensure the appropriate level of facilities was made available both to buy-out KCP and finance that growth.
Ian Mansell, Senior Director
The recruitment sector is one of our specialist sectors within Orbis, we were very pleased to be involved in another transaction in the sector with the high-quality Siamo business.