Published: 5th August 2011
Medical supplies company MBO show banks are open for business, says corporate finance expert
BTG Corporate Finance has advised on the management buy out of Medicina Ltd on behalf of shareholder and Managing Director Ken Harrison.
Emma Jones, a partner at BTG Corporate Finance, advised Mr Harrison on the deal which sees him take on 100% ownership of the business after obtaining the balance of shares from the co-founder and shareholder, Mark Graham.
Based in Bolton, Medicina Ltd designs and sells medical supplies to the NHS and wholesalers. Emma explains that the deal will allow the business to move to a new level:
“Mr Harrison is looking forward to driving the business forward under his ownership; exploiting opportunities overseas and preparing to launch a new product base.”
The Royal Bank of Scotland funded the MBO whilst Steve Jarman at Stripes Solicitors provided legal advice to Mr Harrison on the transaction.
Emma says the deal demonstrates that bank funding is available to the right proposition:
“Much is made of the banks’ reluctance to lend to smaller businesses but this deal demonstrates that the lending is there. Medicina has a strong history of consistent profitability with a good proven management team – it is these credentials that the banks look for in order to fulfil their lending objectives.”
Emma qualified as a Chartered Accountant in 2002. Since then, she has specialised in corporate finance, joining BTG-McInnes in July 2006. She has extensive experience in advising the SME market on fundraising, re-financing, acquisitions and disposals, across a broad range of industries.