A Leicestershire-based engineer is looking to future proof his business after securing half-a-million pounds of investment to complete a partnership buyout.
Ian Mustard, director of Milturn Precision Engineering, on the Dodwells Bridge Industrial Estate in Hinckley, secured the six figure loan through the new peer-to-peer lending network Money&Co to buy out retiring business partner Brian Kemp.
(from left to right) Ian Mustard (Milturn), Paul Carvell (Stewart Fletcher & Barrett), Richard Mason (Ludgate Finance) and Shelley Harvey (Stewart Fletcher & Barrett)
He was supported throughout the fundraising process by Ludgate Finance, which is a leading specialist in raising business loans in the fast paced peer-to-peer lending market, together with Midlands-based accountants and business advisors Stewart Fletcher & Barrett, who are part of The SFB Group.
It is the first deal to have been completed by Ludgate Finance since it set up a new city centre location at Victoria Square in Birmingham.
Milturn was established in 1997 and supplies high quality precision components to a wide range of industry sectors including aviation, automotive, film, motorsport, printing and photography.
The company, which employs 16 people, has built up a large client base right across the UK including supplying components for award-winning Leicestershire-based lens manufacturer Cooke Optics.
Mustard said: “It was largely about adding consistency to the business. The buyout had been planned for some time but we needed to raise enough capital so that I could take over Brian’s share and move forward with the business.
“We sought advice from our accountants Stewart Fletcher & Barrett who completed a valuation of the business and also put us in touch with Ludgate Finance who are experts in raising alternative finance.
“It was a very interesting process and we were delighted with the result as it means I will be able to continue to drive the company forward as sole director.
“We have witnessed consistent growth over the last few years and I will be looking to expand the company by another 25 per cent over the next five years.”
Money&Co, is a new crowdfunding service connecting lenders and investors with businesses seeking finance. It is the first time Ludgate Finance has worked with the network.
Richard Mason, director of Ludgate Finance, said: “Without the £500,000 investment, secured through Money&Co, Ian and Brian would not have been able to put their retirement strategy in place.
“Unfortunately many banks are unwilling to lend when shareholders or directors wish to exit the business, so peer-to-peer lending networks such as Money&Co often provide the best alternative to secure the deal.
“It is fantastic to see that the investment will allow Milturn to put its plans for future growth into action and I wish Ian the best of luck as he takes over as sole director.”
Stewart Fletcher & Barrett has worked with Milturn for many years and assisted the company with the set-up of the retirement strategy.
Shelley Harvey, director at Stewart Fletcher & Barrett, said: “It is important for companies to think about their retirement plans and to seek advice about how to implement the best exit strategy for both the company and the individual.
“After valuing the business it was a case of raising an investment that would facilitate the company’s plans and the deal secured through Money&Co was well-suited to meet the needs of the business going forward.”