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Overseeing the Financial Challenges of an MBO

Ludgate Finance LogoTraditionally, MBOs were funded through a bank or private equity fund, but an overhaul of the financial industry in more recent years has opened other options, and more and more management teams are using P2P lending to finance their buy outs.

P2P lending offers a significant avenue to raise funds for MBOs, and opens up extra opportunities for strong management teams to take on companies with potential to ensure their success in the future. 

A perfect example is that of a West Midlands based management team who recently sought funding for the acquisition of a large M&E Building firm, with a view to developing its project portfolio and growing the business significantly over the next 2 years.

Ludgate Finance arranged the funding stream for the deal, using their considerable experience in the financial industry, and specific expertise in working in the P2P marketplace. As a Sponsor of the online P2P lending specialists, ThinCats, Ludgate thoroughly researched the background of the company and the reputation of the buyout team, before presenting their evaluation to the ThinCats bank of lenders. ThinCats lenders assessed the opportunity based on these details, and rapidly supplied the £1.25 million necessary for the deal to go ahead.

If you would like any further information on raising funding for an MBO, please contact Steve Grice at Ludgate Finance on 07966 680532 or email This email address is being protected from spambots. You need JavaScript enabled to view it.. For information on P2P lending, please visit

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