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MBO at Cambridge Insitu

We acted as lead adviser on this management buyout at Cambridge Insitu which saw the founding shareholders transfer ownership to second tier management.

What we did

PEM Corporate Finance acted as lead adviser on the management buyout at Cambridge Insitu Ltd which is engaged in the design, development, manufacture and usage of on-site pressuremeters for measuring the stiffness and strength of soils and rocks.

Company background

Based in Cambridge, the company was started nearly 50 years ago and initially operated under a licence to manufacture and market electronic thermometers used to measure the body temperature of mammals. However, the business developed over time to focus on pressuremeters, electronics and gas control, data logging and analysis software, load cells and strain gauging.

What was special?

Although this was a full exit for the founding shareholders, there still needed to be an agreed handover period to ensure operational continuity post-MBO. Hence, detailed service agreements for the founding shareholders were drawn up alongside the transactional documents. Our advisers structured the payment terms and project managed the deal to completion.

Deal structure

The transaction saw the founding shareholders fully exit the business, selling 100% of their equity to the management team.