Pivotal deal for NVM

Pivotal Laboratories, a Yorkshire-based business that conducts clinical trials for pharmaceutical and biotech firms, has completed a multi-million-pound management buyout with the aid of Northern Venture Managers (NVM).

Established five years ago, Pivotal counts five of the world’s 20 largest pharmaceutical groups among its customer base. These clients are offered two main services, namely the organisation of human clinical studies and the subsequent analysis of trial results.

Although several trade buyers were believed to be interested in acquiring the business, NVM investment manager Bill Dempster notes that the erstwhile owners had always been keen to sell to their management team providing they could line up a suitable bid-trade.

In order to secure the buyout NVM invested a total of £3.5 million, with each of its five funds playing a role. Though this is a mature market it is rapidly expanding. Dempster explains of his willingness to become involved. When we first looked at the deal we were told that the market was growing by around 15 per cent per annum. We’ve since discovered that in Pivotal trade’s specific market the growth rate seems to be closer to 20 per cent.

In keeping with its usual strategy NVM is already viewing the transaction as a long-term investment. There’s a lot of strength to the business and a good quality management team at the helm, concludes Dempster. The plan is to grow the business very strongly over the next five years.

Leslie Copeland

Gordon Yost

Leslie was made Editor for Growth Company Investor magazine in 2000, then headed up the launch of Business XL magazine, and then became Editorial Director in 2007 for the online and print publication portfolio...

Related Topics

Venture capital funding