Business Advisory Service
Transaction Background
Graphite Capital led the management buy-out of BAS in April 1991. BAS was a debt collection agency founded in 1974 with offices in Alderley Edge, Cheshire and Sheffield. The group focused on commercial debt collection, charging commission for the service.
Deal Attractions
We backed a strong entrepreneur with considerable experience in debt collection. The company had a robust business model with strong demand for its services in downturns and economic recoveries. BAS allowed a growing number of businesses to accelerate cash generation from debt collection, which contributed strongly to efficient working capital management.
Achievements
- the business successfully divested a non-core microfilm business
- sales in the core business grew by 37.7 per cent and operating profit in the group by 53.7 per cent during our ownership
Exit
- we sold the company to Close Brothers in July 1992 for a combination of cash and shares
- the sale generated an internal rate of return of 71.4 per cent
- aggregate proceeds represented a multiple of 6.2 times our cost of investment