SDX Business Systems Limited
Subject
Accounting, Entrepreneurship
Publication Year
1995
Abstract
"We wanted to make some money, although we didn't know how much. it was just an opportunity," said Frank Bretherton, Managing Director of the Business Systems Division (BSD) of Northern Telecom Lts (NT). Bretherton was leading a three man management team attempting to put together a management buy-out (MBO) of BSD, which they intended to call SDX Business Systems Ltd. The current sale terms proposed by NT seemed difficult to finance. Indeed, negotiations between the team and NT were already tough and, with many issues yet to be discussed, they were likely to get tougher still. Bretherton and his team could invest £140,000 of their own money in the MBO. Although they did not yet know how the deal would be financed, nor how much equity would be required, they considered it likely that an investor able to provide additional equity funds would be needed. What share of the business they had to give up would depend, among other things, on the amount of equity finance from the outside investor.
Topic List
Entrepreneurship, Opportunity Assessment, Management Buyout, Valuation
Industry
Telecommunications
Publication Event Date
1991
LBS Case Number
CS-94-008-02
Location
UK
Publication Organisation Size
74
Publication Research Centre
Entrepreneurship
Supervisor
JOHNSON, R M
Available on ECCH
No
