Broker looking for acquisitions now management owns 70% of business
The management of broking group Besso has bought 15% of the company’s stock from venture capital firm BP Marsh for £1.1m.
Besso said the deal provides the means to grow the business by retaining and attracting broker teams and via acquisitions.
As a result of the transaction, management now owns 70% of Besso and BP Marsh 30%.
Besso acquired the stake by exercising a call option. The option was granted in 2011 when BP Marsh increased its investment in Besso as part of the broker’s management buy-out.
The additional 15% stake will also be used to create a share option scheme for Besso employees.
“This share purchase marks an important step forward for us,” Besso chairman Michael Wade said in a statement. “Our key business producers will become significant shareholders in Besso and consequently the management team’s interest is aligned with shareholders in focusing on building our successful independent Lloyd’s broker for the long-term.”
He added: “Besso is well placed to attract new individuals to join our group as well as actively seeking opportunities to acquire specialist firms.”
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