FMP Global (FMP) originally started business back in the early 1990s serving the UK and USA payroll markets. FMP is now the UK independent market leader in international payroll services, and also provides payroll bureau services and mission critical technology solutions to its UK clients. FMP partners with Paychex and Western Union, and processes payrolls in over 135 countries around the world supporting 40,000 clients.
FMP was sold to Bond International plc in May 2014 with a view to continuing its growth as part of a larger group. In 2015 however, Bond undertook a strategic review which resulted in it moving to a break up strategy. This led to the opportunity for management to pursue a management buy-out and they selected Tenzing Private Equity (Tenzing) as their preferred funder. Tenzing, aware of our sector expertise and experience of completing complex buy-outs from listed companies, approached us to advise on the deal.
What difference did we make?
Tenzing had appointed us to advise on the buy-side owing to our experience and credentials in the HR Services sector, our ability to quickly get under the skin of a complex business and our ability to get involved in the detail of the transaction.
Our first task was to support management in creating a detailed business plan and operating model to support the investment proposition. This included working out how the business would separate from its current group and what investment and actions were required to make it a standalone company. The buy-out comprised three businesses which were hived out into Newcos before completion with a back-to-back transitional agreement with the parent company.
We also assisted in shaping the organisational structure of the new business, negotiating management terms and project managing the whole deal to completion, including raising the debt funding. Catalyst generated a number of offers from potential funders before negotiating a suitable debt package and covenants with the selected banking partner. The investment has created a leading independent payroll solutions provider with a focus on international payroll services.