Cavendish Medical Management Buy Out

The Cavendish team took the decision to engage Meta with a view to securing expert assistance to negotiate a deal with an acquirer and manage the transaction to a swift conclusion. Mark Ledger-Beadell, acting for Meta, soon learned that a sale would not have achieved all shareholders’ respective objectives to a full or equal degree; particularly in respect of the younger members of the team.

In light of this, Meta tabled an alternative scenario for the shareholders’ consideration, suggesting a management buy-out could:

• address succession planning issues.
• allow those who so-wished to crystallise some or all the value of their shares whilst other members of the team could increase their holding.
• create a more balanced and reinvigorated management team to continue to take the business forward.

On this basis, Meta assisted the shareholders to construct a business plan to ensure an orderly transition of roles and responsibilities into a newly-crystallised management structure capable of taking the company forward in its evolution and growth. Under the plan, Mark Martin has transitioned to become chairman of Cavendish Medical and passed the title of managing director, as well as a significant proportion of the responsibility of day-to-day management, to Simon Bruce. Other shareholders have also taken more senior roles and responsibilities to form a formidable team.

Commenting on the transaction, Mark Martin said, “Meta’s deep knowledge of the corporate finance market allowed us to organise and complete an MBO which looked highly implausible when we first met! Simon and I are grateful for the expert assistance and advice provided by all our advisers and we are excited not only about the future of Cavendish Medical, but also by the prospect of working with them again on future transactions.”