Following an introduction by Reuben Berg, Dow Schofield Watts backed the management buyout of the Davenham Group raising investment from private individuals.
Davenham, a Manchester based finance provider, previously lent across 3 main product areas – property, trade finance and asset finance – but suffered significantly from the liquidity and credit crisis in the latter half of 2008.
Its board conducted a strategic review of the group in Summer 2010 which recommended that it should cease to write new business and should collect its loans. It was placed in the hands of administrators from MCR (now Duff & Phelps) on 11
October 2011. At the time of the administration Davenham owed its bank syndicate £64 million.
Notwithstanding the downturn, Berg was able to facilitate the delivery of the opportunity recognised by Davenham of an existing strong management team, coupled with a cash generative and strong asset-backed business.
Having sourced a funder, the busy Corporate Department at Berg, led by Stephen Foster, advised the buying vehicle on its successful acquisition.
To discuss how we can provide further advice in connection with these issues please contact Stephen Foster, Head of Corporate at
email@example.com or by telephoning 0161 833 9211.
The information and opinions contained in this article are not intended to be comprehensive or to provide legal advice. No responsibility for this article’s accuracy or correctness is assumed by Berg or any of its partners or employees.
Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of the contents of this article.