When we announce a deal, the line that gets noticed is the funding facility. Four million pounds for City Centre Recruitment and Magnus Search. One point four million for SERT. A facility that grew to nine million as more businesses joined Magnus.
It is worth explaining what that money is actually for, because it is not a prize and it is not a loan you spend on a new office.
It pays people before clients pay you
Recruitment is a working capital business. You pay your temporary and contract workers every week. Your clients pay you on thirty, sixty, sometimes ninety days. The faster you grow, the bigger that gap becomes. Plenty of good recruitment businesses have not failed for lack of clients. They have failed because growth ate their cash.
A proper facility closes that gap. It means a business can say yes to the big contract instead of worrying about the payroll it creates.
It buys time to fix what matters
The second job is investment. Technology, compliance, data and the back office that a single business struggles to fund while it is also trying to win work. Those are the things that make a business more valuable, and they cost money before they earn any.
What it is not
It is not a substitute for a business that works. We do not load companies with debt and walk away. If the model is broken, money only makes the breakage more expensive. That is why we ask the hard questions about market, model and people before we talk about funding at all.
Why it matters to a seller
If you are weighing up offers, ask every buyer the same thing. What will you put behind the business after the deal, and what is it for? The answer will tell you far more about your future than the headline price.
Liquidity gives a business choices. Our job is to make sure the good ones never run out of them.
Thinking about what comes next?
Every conversation starts with Nick Gordon, our founder. It is confidential, it commits you to nothing, and the best ones happen while the business is still performing.