Disposal and vendor assist to private equity backed management buyout

The client

Founded in 2003, the Hitchin-based company Compliancy Services, which provides compliance consultancy and regtech offerings to a range of regulated financial services clients, were actively planning for their next phase of growth. 

The company, which manages client’s ongoing compliance and regulatory obligations and assists businesses in becoming authorised by the Financial Conduct Authority (‘FCA’) and the Prudential Regulation Authority (‘PRA’), instructed us to assist and advise on a disposal via a private equity backed MBO.

What we did

Our specialists, Ian Barton and Philippa Robinson, immediately recognised the need to identify a private equity partner who could work with the current stakeholders to help shape the future of the company. We initiated a seamless process where we efficiently matched a buyer which suited the company’s approach and values in addition to working with the shareholders to design a resilient structure for the business to move forward into its next phase of growth. This approach allowed for the retirement of company founder Iain Stephen, as well as the equity incentivisation for the majority shareholder Ben Mason and the new CEO Phillip Naughton, whilst delivering a partial exit.

The outcome

After undertaking a vendor assist review and report, we used our in-depth understanding of the client’s needs and solid connections with private equity funders to successfully facilitate a transaction backed by Ethos Partners LLP in less than three months. 

The sale will enable the company to accelerate its growth whilst continuing to work with its clients as a trusted compliance partner, delivering cost-effective solutions as the regulatory landscape continues to increase and evolve. It took significant effort from all sides to complete this transaction in the agreed timescale, especially during a national lockdown, and we look forward to subsequent news of the future growth of the business in the coming years.