A South Wales service business which helps global customers cut their energy use has seen their revenue and profits double following a management buyout in the autumn of 2022.

Avantis Marine is an energy service platform, working with companies in the oil, gas and maritime industries.

Established in 2019, the Bridgend-based company works with clients to help them cut energy use and carbon output, working with shipping firms to find clean tech, power solutions and new approaches to engineering.

In 2022, the Development Bank of Wales backed the management team at Avantis in an MBO with a seven-figure investment package. Entrepreneur Tom David took on the role of CEO, with the managers buying out former owners Envoy and Partners.

Tom said:

“I’m pleased to say we’ve performed well pre and post buyout, and we’ve doubled profitability and revenue, year-on-year, since.”

“The MBO allowed us to deliver our strategy in the way that we want, with our vision of the future in mind. And it’s given us a more equitable stake in the business as it grows internationally.

“The buyout itself did have its challenges but was really enjoyable, and the Development Bank supported us throughout. It meant we were able to buy out the former owners and have the additional working capital we needed as we looked to continue our growth. The package the Development Bank put together had a mix of equity and debt which gave us some breathing space and brought risk down when compared to conventional debt.

“Having their presence on the board gives us more strategic support as and when needed, and for a high-growth, high-performance business like us, that really is invaluable.”

Watch the supporting case study video below:

Find out more about how Development Bank of Wales can support with your MBO – Development Bank of Wales | Management Buyout