Hawsons Advises on the Management Buy-Out of Kingsway Mortgages Limited

Since opening its doors in 1999, Kingsway Mortgages Limited (“the Company”) has gone from strength to strength, delivering mortgage advice and education to thousands of homeowners within London and the surrounding areas.

With an in-depth knowledge of the market and a team of highly experienced brokers, the Company has firmly established itself as one the capital’s leading independent mortgage brokers.

Rather than sell the business to a third party, the selling shareholders preferred to maintain the Company’s culture and ensure the stability of the business for the employees, and its clients, and so a Vendor Initiated Management Buy-Out (“VIMBO”) seemed a more fitting and appropriate exit option.

A group of current employees would become the new owners of the Company, buying out the original shareholders.

The shareholders of the Company had no prior relationship with Hawsons, but appointed the firm due to the high levels of expertise and experience in the sector and in executing transactions of this nature.

Hawsons were appointed as lead advisory on the deal, fully project managing the transaction from initial valuation through to detailed review of legal documentation, all under strict time constraints to deliver the deal before the Autumn Budget.

James Perkins, majority seller, commented on the transaction as follows: “Myself and the other outgoing shareholders are immensely grateful to the team at Hawsons Corporate Finance for advising us on this transaction. The structure and approach of the deal worked for all parties involved and we are very confident that the business is in good hands going forward.”

The transaction was led by Peter Wilmer and Jack Parker of the Hawsons Corporate Finance team. MD Law, led by James Burdekin, provided legal advice.