Greater Manchester debt advisory firm All Clear Finance has secured a deal which values the business at about £15m.
The Timperley based company, which helps people who are struggling with credit and store card bills, has enjoyed a huge rise in turnover, from just £400,000 in 2000 to £3.7m in 2003.
Founders Nick Holmes and Miles Grady have sold their majority stake to a management team backed by private equity investor, Inflexion.
As part of the transaction Inflexion and management have both invested in the business, which now comprises a debt advisory business, an FSA regulated financial product sales company and a compliance entity.
Inflexion’s Tim Smallbone, who joins the company board as non executive investor director, said: “The company has a first rate management team led by Chris Holmes. The macro economic factors driving demand for the company’s services appear to be very favourable and the strategy of positioning the company as provider of best advice and solutions to the consumer means All Clear is well placed for rapid growth.”
The Manchester Corporate and Structured Finance team of The Royal Bank of Scotland arranged a £5m senior debt facility as part of the deal. Phil Tarimo and Philip Mason led the transaction on behalf of The Royal Bank of Scotland. Phil Tarimo, Managing Director of Corporate & Structured Finance North, said: “We are delighted to have been able to support the expansion plans of an existing bank customer.”
Paul Quinn, who leads The Quinn Partnership’s UK management due diligence practice, said: “We were pleased to work with Inflexion and the management team to identify the blend of talent already in place as well as the style of approach that will maximise the opportunity to deliver tremendous success in the new era.”
The commercial due diligence was performed by a team from Deloitte introduced by Rob Seldon.
Dow Schofield Watts who advised the founders Nick and Miles were led by Mark Watts and Andy Dodd.
Mark Watts said “We are very pleased to have helped the founders in this partial realisation. This transaction has allowed the founders to not only realise value for what they have achieved to date but also to enjoy a significant share of Allclear’s future potential.”