Menzies Corporate Finance has assisted in the management buy-out of specialist recruitment agency, Rearden-Cord.

Rearden-Cord is a leading supplier of temporary staff for industrial, driving and administrative work in London and the South East. The agency works in most major business sectors, both private and public.

The Menzies team was led by Jeremy Rayment and Ross Wiggins, with specialist tax advice provided by tax partner Richard Godmon.

Menzies reviewed and advised on Rearden-Cord’s business plan and helped source and negotiate finance from Lloyds TSB Bank on behalf of the management team. Finance was a combination of leverage finance and discounting. Tax advice was provided on vendor warranties for the purchasers’ protection on acquiring their shareholding.

Debbie Berrie, Director leading the MBO said: “We couldn’t have completed the buy-out without Menzies’ expertise. It’s become much harder in recent months to secure debt finance from the banks, but Jeremy and his team understood exactly what the bank would require, and at the same time, what we needed. They could see the potential in our business and were able to guide us on how we should go about sourcing finance.”

Jeremy Rayment said: “These are seemingly challenging times for recruitment agencies in the public markets, but it was apparent to us that Rearden-Cord’s business model is well positioned to thrive as it deals mainly with a specialist market,  temporary industrial, driving and administrative placements.”  

“This is just the sort of business and transaction that Menzies works so well with – a management team stepping up to buy-out existing owner managers.”

Rearden-Cord’s management team now comprises Debbie Berrie and Ben Sangster.

The funds will enable Rearden-Cord to implement a new strategy for the growth and development of its client services, and at the same time enable it to pursue greater penetration of its marketing and business development plans. 

Legal advisers were Howell-Jones for the buyers and Palmers for the vendors.

The terms of the transaction are undisclosed.

-- ends --