Deal summary

Catalyst acted as Lead Advisor on the management buy-out of Valldata supported by ISIS Equity Partners.

Wiltshire based Valldata is the UK’s leading provider of outsourced donation processing and fulfilment services for the UK not-for-profit market. It uses its advanced technology and IT systems to handle large volumes of transactions covering paper based donations, donations via telephone and on-line services.

Valldata is a partner for charities that helps them manage and deliver fund-raising campaigns and it provides outsourced services to over 50 of the largest UK charities including assisting the Disaster Emergency Committee alongside BT in handling high volume emergency campaigns.

What difference did we make?

Valldata was a family owned business that had successfully grown to be the market leading business in its sector. However, the key challenge that faced the management team was how could they accelerate the growth of the business both organically and by acquisition given the constraints of the existing shareholder and funding structure?

Following a review of the business and having developed a detailed understanding of the objectives of the respective shareholders, Catalyst presented a proposed management buy-out structure which delivered the following objectives:

• Allowed the existing family shareholders to crystallise their current shareholder value; cash out the majority of their proceeds; whilst maintaining a minority shareholding to share in the future equity upside

• Introduced a private equity investor as a minority shareholder to provide funding support for the ongoing buy & build strategy

• Avoided over-leveraging the business with bank debt and therefore allows the cash generation to be re-invested back into the business

• Created an equity structure to incentivise the management team to maximise shareholder value in the future

Catalyst also advised the management team on the selection of their preferred private equity house and negotiated the deal on their behalf.

The revised shareholder and funding structure will allow the management team to accelerate their strategic vision of delivering an integrated fundraising services led business for the UK charity sector.

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What our client said
“Having been highly recommended, Catalyst were appointed to advise on the MBO of Valldata, and we were not disappointed. The team really got under the skin of the business and provided clear, straightforward and invaluable advice in a manner which enabled the process to run smoothly with a very satisfactory outcome for all parties. I have absolutely no hesitation on recommending Catalyst to anyone else who needs solid advice. We look forward to continuing our relationship for many years to come. Hamish Horton
Chief Executive, Valldata