Case Study: Zenergi Limited
- Management Buy-Out
- Deal completed:
- January 2013
Meridian advised the shareholders of Zenergi Limited (“Zenergi”) on the sale of their shareholding to the incumbent management team.
Southampton based Zenergi, provides clients in the private and public sector throughout the UK with energy brokerage and administration services, with energy purchases totalling in excess of £25m during 2011.
The deal provides an opportunity for the management team to be rewarded for business growth whilst allowing the existing shareholders to realise their wealth in the business and reduce their daily involvement in the business.
Kevan Walsh, Zenergi’s founder said, "We engaged Meridian to help outline our options as shareholders as at the time we were entertaining an unsolicited trade approach for our business. As we had not been through a process such as this before, we had thought that selling or turning the offer down were our only options. The Meridian team not only successfully negotiated the trade offer upwards but showed us other options by presenting our business to private equity, gaining PE offers to effect a partial Management Buy-Out (“MBO”), and also explained how we could affect an MBO without private equity investment.
Without the help and guidance of Meridian we would not have understood the options, which may have led to the business being sold to a competitor, risking all we had built to date."
Michael Barcia, Meridian Director said, “When we first met Zenergi we realised that their main objective was to reduce their time in the business and hand the control of the administration and legal aspects of owning a business to someone else. We worked with the team to devise an alternative to a trade sale that allowed them to retain some shareholding in the business whilst still achieving these aims. The deal we completed has not only incentivized the management team but also reinvigorated the shareholders to drive the company forward over the next few years."