Mobeus Equity Partners invested £6m in the management buyout of EMaC, the UK’s leading provider of outsourced service plans to motor dealers.
Emac employs 55 people and currently manages over 350,000 plans for over 1,000 motor dealers in the uk.
Deal
EMaC was wholly owned by a motor dealer group which wanted to raise finance to expand its core business by acquisition. The sale was effected by an MBO to the Managing Director who had been running the business and was largely responsible for its success.
Finance
Mobeus put together a £10m funding package comprising £6m investment from Mobeus and £4m of bank term debt.
Management Solution
To strengthen the team, Mobeus Operating Partner, Peter Brooks, joined as investing Chairman. Brooks is a highly successful private equity investor who specialises in support services investments and has been involved as principal in two transactions in the automotive sector.
Transacting Expertise
The transaction had a number of tax and regulatory issues which could have jeopardised the deal. Mobeus adopted a measured and methodical approach to resolving these issues.
Mobeus returns
The investment returned £18.5m in cash and a return of 3.1x. IRR was 49%.
