SME Loans

Mercia backs £2m buy-out at risk management firm

A Yorkshire insurance and risk management consultancy has undergone a £2.0million management buy-out backed by debt funding from Mercia Fund Managers.

ProAktive Risk Group, which is based in Doncaster, is a commercial insurance broker which also provides risk management advice to help businesses reduce claims and premiums. Its consultancy services include HR, health and safety, business continuity planning and fleet risk management.

The deal gives control of the business to a long-serving management team led by Andy Morley and Ian Laycock. It allows founder Jon Whiteley to step down from the day to day management though he will continue to play a role in the business and retain a significant shareholding. The buy-out was partially funded by deferred consideration on the part of Mr Whiteley.

ProAktive was established in 2003 under its current name, though its origins date back to 1975. The business employs a team of over 50 staff and has a strong customer base.

Jonathan Craig, Investment Manager with Mercia Fund Managers, said:

“ProAktive’s business model demonstrates its forward thinking approach. By working with clients to identify potential business risks and improve training and internal systems, it can often help reduce premiums and claims. The business has an exceptionally loyal client base and is well placed to capitalise on the opportunities in the market. This funding allows the founder to hand over day to day control to the existing management whilst preserving the values of the business.”