International Women’s Day: Female Founders Buy Out Investors At Growing Recruitment Business

This International Women’s Day Asset Advantage are profiling the success of two female founders, and how having access to finance and expertise helped them take full control of their business and grow.

The female team founded their sector-focused recruitment business in 2023. They moved the business successfully through its start-up phase, and consistently demonstrated strong trading performance and profitability.

While initial investors provided start-up capital and strategic support, they were not involved in day-to-day operations. Instead it was the female founders, two very experienced directors, who have been fully responsible for building and running the business. The founders negotiated with the investors to buy them out, so they could take full control of their business. The investors agreed the price, but the next challenge was raising the money, and navigating the buy-out process.

The Challenge

For brokers a Management Buy-Out (MBO) of a recruitment firm can be difficult to place as it is a service-based business, with no tangible assets. In addition, the client required guidance through an unfamiliar process. 

The client approached Marc McLoughlin at Orca Finance to secure the funding. Orca Finance are experienced with Business Acquisitions, and worked closely with the directors to support them throughout the transaction.

The Funding Solution

Asset Advantage provided a six-figure Business Acquisition Loan, structured over a five-year term to fund the shareholder buyout. Despite the complexity of the transaction, credit approval was issued within just two days, enabling the deal to progress swiftly.

Why It Worked

Marc felt Asset Advantage was the obvious choice for this deal, as Asset Advantage works to understand the objectives of the business, and their Business Acquisition Loan makes completing these transactions more straightforward.

With the combined expertise of Orca Finance and Asset Advantage the transaction completed smoothly, enabling the female founders to take full control of their business.

Asset Advantage has recently been touring the UK with its regional broker roadshow to support commercial finance brokers in structuring deals for success. Following stops in Manchester and London, the roadshow heads to The Belfry in Birmingham on Thursday 12 March. Further details and registration can be found here.

For more information, please contact us or call 01256 316 200.