Regulatory compliance tech vendor eflow Global has successfully completed the management buyout (MBO) of the company.
Following several years of strong and sustained growth, the company – which has a family-owned majority – led a buyout of all the remaining VC positions in the company through a funding structure provided by SME capital.
eflow said the move is a key step in the next phase of growth for the company, with the buyout marking the start of a ‘new period of technological innovation and geographical expansion’.
How will the MBO impact the long-term direction of the company? eflow Global CEO Ben Parker said, “We have invested heavily in our platform architecture in order to quickly and easily deploy new products in the RegTech space.
“In order to better achieve this goal, the remaining executive management made the decision to pivot away from on-premise trade lifecycle solutions. Now that the executive team possesses majority ownership, we can follow this trajectory undisturbed.”
As for why the company undertook the MBO, Alexander Parker – chief technology officer at eFlow Global – commented, “The biggest driving force behind this decision was our clients. Without the burden of needing to prioritise our VC investors, we have the freedom to make business decisions which we know will be of the greatest benefit to our clients, as well as the long-term wellbeing of our company.”
eflow said it now plans to capitalise on its independence by expanding and strengthening their presence in the US and Asia.
Parker concluded, “I am very glad that we have been able to achieve something which isn’t common with high growth tech businesses today – eflow is now majority owned by the executive management team. This feat wouldn’t have been possible if we didn’t have such fantastic people at every level of the company.
“Of course, we believe that this move will be a great win for all of us at eflow, but the positive impact will be felt most of all by our clients,” said Parker. “With the successful closure of this deal, we are re-affirming our pledge to commit 60% of all profit back to research and development.”
Earlier this year, eflow Global linked with eComms firm TeleMessage to bolster the communication data available in its market data library.
Copyright © 2022 RegTech Analyst
Copyright © 2018 RegTech Analyst
