Industry Sectors:

IT,

Type of Finance:

Asset Based Lending
Mergers and Acquisitions

Region:

London

Date:

1 February 2017

Turnover:

1-5 Million

IGF Asset Based Lending (IGF) has facilitated the management buy-out (MBO) for Testing Solutions Group (TSG), with a £1,500,000 transaction. The three-year facility will be used for the acquisition and to provide ongoing working capital for the business.

Established in 2002, TSG is a specialist software testing company that was formed to help ensure successful business outcomes for clients’ IT systems. TSG provides assurance and testing solutions for business critical programmes predominantly for financial services and legal sectors. Also, the company offers fully accredited BCS, ISTQB & iSQI courses for individual certifications and practical software testing courses for those seeking workshop based experience linked to their roles.

IGF worked with the adviser, Moore Stephens, to create a bespoke and short-timetable funding solution for TSG, resulting in a £1.5million deal that included Accounts Receivable and a Cash Flow Loan. Once IGF’s facility had been secured, the company completed the MBO, led by Mark Watson, previously COO and now CEO of the business. Mark Watson and Co-Director Matt Robson are also investors in the new business.

Mark Watson, CEO of Testing Solutions Group, said:

“The experience of the asset-based lending team at IGF proved to be a vital element in the successful execution of this MBO transaction. They were able to move incredibly quickly and delivered a demonstrably higher availability than our previous facility, with the scope to draw down further as required. We found ourselves in a difficult position in terms of timing and verification of our existing performance and IGF’s committed and responsive approach gave us and our vendor’s confidence right from the start.”  

Mark continued: “This is the beginning of a very exciting phase for TSG. As trusted advisors to so many leading City names, we are uniquely placed to leverage the full potential that London offers as a centre for investment in new and ever-changing technologies, not only in Fintech, but also more widely.“

Jon Hughes, Commercial Director at IGF Asset Based Lending, commented:

“When Moore Stephens sought our services, we could see that TSG is a business with a clear niche and a well-established high-quality customer base, so we were committed to helping the MBO team in taking the company forward. By providing a working capital facility based on accounts receivable, we will be able to support TSG’s strong growth plans. We also recognised that the provision of a Cash Flow Loan was needed to facilitate the acquisition. This is a great example of IGF’s ability to provide a fast, flexible and reliable funding option where mainstream lenders cannot deliver.“

Founded on expertise, IGF is a leading independent commercial finance provider with a national presence. We have a strong entrepreneurial culture and know what it takes to build and grow a successful business. We understand that SMEs rarely stand still. Neither do we.

At IGF, we blend art and science to meet our clients’ needs. On the one hand, there’s the creativity and passion we apply to every deal and relationship, and, on the other, the incisive technical deal structuring capability that underpins our clients’ success. To capitalise on opportunities and meet the challenges of growth, we have developed a range of solutions and services that will enable you, or your Clients, business to prosper. Our commitment to providing creative financing solutions to support business growth and working capital is stronger than ever. Whether it be for growth, a transaction to support, such as an MBO or acquisition, or help when going through a restructure we are ready to provide support.

    IGF: Independent Growth Finance  :  0800 051 8402
    [email protected]

    www.igfgroup.com
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Paddock Wood
Kent
Tonbridge
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