Disposal to a private equity backed management buyout

The client

Oxfordshire-based Pareto FM was founded in 2014 by the current managing director Andrew Hulbert and has built a strong reputation in the industry as a people business, with a focus on customer service, diversity and staff engagement.

Pareto was set up as an antidote to large, inflexible service providers, delivering a tech-enabled suite of customer-focused solutions. The management team has been highly successful
at building a blue-chip customer base and boasts a market-leading Net Promoter Score of 75, as well as being recently featured in the Sunday Times Fast Track 100.

What we did

Our expert team, led by Fardeen Nariman, Ian Barton and Reuben Taylor, acted as lead adviser to facilitate an MBO which will enable the management team to not only continue to expand organically, but also take advantage of depressed asset pricing as a result of the pandemic, which has seen a number of less agile Facilities Management businesses struggle to tilt their business models.

We recognised the importance of finding the right partner to go on this journey with Pareto and supported the company’s shareholders in developing its business plan which helped secure an investment from private equity firm, NVM, who valued the business at £18 million.

The outcome

We are delighted to have supported two of the founding shareholders in successfully exiting the business, as well as finding Andrew and the management team the right partner in NVM that will help the business continue its impressive growth. It is a strong validation and testament to the business that has been built and led by Andrew and his team and the injection of this investment makes Pareto a significant force in the industry. We look forward to following its next phase of development.