Introduction
Mesoestetic UK, a value-added exclusive distributor of Mesoestetic Pharma’s high end, clinical aesthetic products, has built a strong reputation for customer service over its 17 years in business. With an established track record of growth and a loyal customer base, the business faced a pivotal moment when its founders sought to transition themselves towards retirement. A management buyout (MBO) presented the ideal solution to ensure continuity, drive long-term growth, and safeguard the company’s legacy.
Challenges
Neither the owners nor the senior management team had experience of how a management buy-out of a owner managed business might work. The deal needed experienced and expert insight across all areas, from the structuring of payments to the complex legal documentation needed to execute the deal optimally.
The key goal was to ensure a seamless transition to the existing senior management team.
Our Role
Recognizing the unique needs of Mesoestetic UK, our team was engaged to provide end-to-end support for the MBO. Our role included:
- Preliminary Evaluation: Conducting a thorough valuation of the business and identifying the optimal deal structure.
- Negotiation Support: Bridging discussions between the outgoing owners and the management team to align on terms.
- Financing Strategy: Securing the funding options through a thorough review of the MBO lending market.
- Advisory & Execution: Guiding the founders through the legal, financial, and operational complexities of the buyout. As a friendly deal, we walked the team through the key aspects of the deal, minimizing the disruption from the legal process.
We adopted a collaborative approach, working closely with Mesoestetic UK’s management team to craft a strategy that balanced the needs of all stakeholders. Key actions included:
- Crafting a deal structure that minimized financial risk while balancing the owners’ needs for retirement security
- Creating a financial model that gave confidence that the deal would leave the business in a strong position, for the benefit of all parties
Results
The successful completion of the MBO resulted in a seamless transition of ownership to the management team. Key outcomes included:
- Enhanced Strategic Control: The management team now has the autonomy to steer the business toward its long-term goals, without losing access to the years of experience that the founders have.
- Operational Stability: The transition preserved key relationships with employees, customers, and suppliers.
- Growth Potential: With a solid financial foundation, Mesoestetic UK is positioned to expand its market presence and continue its legacy of excellence.
Reflections from the Team
Adam Birtwistle, the company’s Founder, said
“Transitioning ownership through this MBO was a natural next step. The business has an amazing culture and a quality driven ethos that Laura and Stephen are uniquely placed to continue. Thanks to Logros Advisory Partners for their exceptional support and for the collaborative efforts of all involved.”
Laura Platt, the new MD, commented:
¨We are honoured by the trust placed in us by Adam and Sandra to lead mesoestetic UK into its next chapter. We are excited to build on the company’s strong foundation and drive its continued success¨
Lessons Learned
This MBO highlighted the importance of:
- Clear alignment of goals between sellers and buyers.
- Expert advisory to navigate legal and financial complexities.
- A tailored approach to financing that supports long-term business growth.
If you are considering your options and want to understand how an MBO (or any other form of business exit) might suit your business and personal circumstances, please get in touch for a free initial consultation using info@logros.co.uk
