Case study - TaxAssist Direct Limited - Business Acquisition
A franchisee-assisted management buy out, or ‘FAMBO’, being supported by HSBC who invited MHA Larking Gowen to review and challenge the FAMBO team’s projections and bank covenant compliance.
In a highly unusual deal, more than half of the 190 TaxAssist Accountants franchisees have bought into a deal to take a stake in the franchise – giving them a 32%holding in the business with three executives.
MHA Larking Gowen was able to report to tight deadlines and react swiftly to changes in the deal structure and financial projections.
Martin Simons, Senior Commercial Manager of HSBC Bank Plc, said:
”HSBC were delighted to work with Tax Assist Direct Limited in this FAMBO transaction. We were impressed with the professionalism and team work of all the professional advisers involved , who worked well together to ensure a successful deal completion”.
James Lay, MHA Larking Gowen partner, said:
“Working closely with the FAMBO team and HSBC, it was interesting to understand the impressive business model and its plans for the future. The professional co-operation between the parties ensured a smooth and efficient deal process”.
MHA Larking Gowen was asked to undertake due diligence in the following areas:
- Financial projections
- Cash flows and working capital
- Balance sheet
- Information memorandum
- Bank covenants