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How an MBI/O deal is financed
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Price of company
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£15million
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Purchase fees
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£750k
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Total
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£15.75m |
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Equity
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Man Directors stake
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£75k
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20%
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Non Exec Chair stake
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£25k
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5%
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Finance Director stake
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£25k
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5%
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Total team equity
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£125k
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30%
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Ventrure Capital Equity stake
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£416k
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70%
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Total Equity finance
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£541k
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Bank/Mezzanine finance
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£15.209m
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Total finance
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£15.75m
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3 years later! Co. sold to trade buyers
Turnover increased from £20m - £40m, Profit from £2m
to £5m
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Sale price of company
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£38million
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Less fees
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£1m
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Less bank/mezz debt/charges
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£7.75m
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Total
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£8.75m
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Balance
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£29.25m
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MBI team receive 30%
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£8.775m
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VCs receive 70%
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20.475m
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VCs total income incl interest/charges
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£37.25m
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VCs return on capital invested
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32% pa compound
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Managing Director receives
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£5.275m
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NX Chairman receives
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£1.75m
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Finance Director receives
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£1.75m
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Total team sum
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£8.775m
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