IGF Asset Based Lending (ABL) has facilitated the management buy-out (MBO) for Testing Solutions Group (TSG), with a GBP1.5million deal. The three-year facility, will be used for the acquisition and to provide ongoing working capital.
Established in 2002, TSG is a specialist software testing company that was formed to help ensure successful business outcomes for clients’ IT systems. The company provides assurance and testing solutions, certified and practical training and recruitment services, predominantly in financial services and law.
IGF ABL created a bespoke and short-timetable option for TSG, resulting in a GBP1.5million deal that included Accounts Receivable and a Cash Flow Loan. Once IGF’s facility had been secured, the company completed its MBO, led by Mark Watson, who was previously COO and now becomes CEO of the resultant business. Mark Watson and Co-director Matt Robson are also investors in the new business.
Jon Hughes, Commercial Director at IGF Asset Based Lending, states: “From the outset, 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.”
Mark Watson, CEO of Testing Solutions Group, says: “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.”
Debbie Clarke, Head of M&A at accountants, Moore Stephens, who advised TSG, says: “The management team at TSG have great plans for the future, and we are delighted to have worked closely with the team to help them through a successful transaction, which will support the continued strong business development of TSG, both now and in the future.”
