MITIE sets up £10m fund to back start-ups

Aaron Morby 12 years ago

MITIE has set up a £10m fund to back public sector managers with smart ideas for mutually-owned businesses start-ups.

The fund will be mainly targeted at teams that have considerable public sector experience and innovative business ideas to help Government drive efficiency and deficit reduction.

MITIE will offer support in the form of equity, working capital, management expertise or back office help to management teams with a viable business plan to develop a mutually-owned business.

While the fund is mainly aimed at public sector know-how, MITIE is also prepared to back good ideas from the private sector.

The MITIE names stands for Management Incentive Through Investment Equity and the contractor boasts a history of helping 80 successful start-ups using the ‘MITIE model’ .

Ruby McGregor-Smith, MITIE’s chief executive said: “We are passionate about providing opportunities for people to develop their careers and grow successful outsourcing businesses.

“With the launch of this fund we hope to attract dynamic entrepreneurial teams that want to start mutually owned businesses which provide innovative services to their customers and create jobs in the UK.”

If you have an idea for a business visit

    How does the MITIE start-up model work?

    The model has operated since MITIE started in 1988. The process develops as follows:

  • A team that wants the opportunity to run a mutually owned business approaches MITIE with their business idea.
  • Provided that their business idea fits with our strategy and does not conflict with any of our existing businesses, we interview the team.
  • If we like the business idea and the team they prepare a business plan.
  • There is then an approval process which concludes with sign off by the Executive Board.
  • The business plan determines the capital requirement. MITIE invests at least 51% of the initial capital required and the management team invests the balance.
  • A limited company is established, placed in MITIE’s structure depending on the business activity being pursued. The start-up business is sponsored by a Executive Board Director and supported by the Head Office team.
  • The team grow their business over the next five to ten years.
  • Between the fifth year and the tenth year the minority shareholders have an opportunity to serve a transfer notice on MITIE Group PLC to earn out their minority interest.
  • In order to calculate the value of the minority stake in the business we use an agreed multiple of post-tax profits averaged over the previous two years, or three years depending on the type of business.
  • The management team stays in place after the earn-out and continue to grow the business and progress their career within MITIE.

Latest news

Andy Milner to return as chief executive of Amey

Milner to return to his old CEO role which he previously held for four years
15 hours ago

Green light for UK’s first carbon capture power station

Keadby 3 gas power station and carbon capture to see £2.1bn investment in North Lincolnshire
21 hours ago

Unite passes union hotel job probe findings to police

Independent reports raise concerns of ‘potential criminality’ around union's £100m hotel and conference centre
1 day ago

Berkeley to slow down investment as sales rates fall

Housing giant to focus on matching construction to demand on existing sites
21 hours ago

Competition concerns about rail signalling takeover

Hitachi’s purchase of Thales’ rail infrastructure could lead to higher fares in future, the CMA has found.
20 hours ago

Plans lodged for Manchester student tower and offices

Plans lodged for £250m One Medlock Street mixed-use office and student scheme
1 day ago

Glasgow civil engineer banned for £100k Bounce Back Loan abuse

Sole director handed 11-year ban for falsely claiming two loans for personal gain
1 day ago

Plans go in for 250,000 sq ft York mixed-use scheme

Local developer pushes ahead with regeneration project in heart of the city
22 hours ago

McLaren tops November contracts league

Excel exhibition centre £200m phase 3 wins lifts McLaren to pole position for contract wins last month
2 days ago

Former Wates CEO joins Mace as new financial chief

David Allen replaces Richard Bienfait who stepped down in September
2 days ago

M25 to go green under new Shell and Balfour deal

New trial of paving on UK's busiest motorway
2 days ago

Bidders wanted for £125m painting and decorating framework

Apply now for latest Fusion21 deal
2 days ago

Robertson wins first MIM-funded Welsh school job

£65m Flintshire school campus project first to use Welsh mutual investment model
2 days ago

Willmott Dixon wins £130m Broadwater Farm estate revamp

Green light for north London estate transformation
2 days ago

Materials giant CRH looks to sell contractor Farrans

More than 550 staff set to get new owner
4 days ago

West Yorkshire transport projects delayed to save £270m

Over 30 transport schemes to be placed on hold due to cost inflation budget pressure
3 days ago

Decision on A1 Costain dualling job delayed for third time

Development consent decision for £260m Northumberland scheme put back a further 9 months
3 days ago

Colas wins £140m Cheshire highways upkeep deal

Incumbent contractor Ringway will handover to Colas in April
3 days ago

Skanska to lend staff cash

Contractor links-up with finance firm to offer affordable loans to employees
3 days ago

Ilke Homes pulls off £100m record-breaking fund raise

Largest-ever capital raise by a UK modular house builder to fund expansion
4 days ago

Construction buyers fear for year ahead

"Construction companies now have a tightrope to walk in terms of being ready for recovery and cautious around investment"
4 days ago

Gove calls for competition probe into house building

Levelling Up and Regeneration Bill 'strengthened' with new measures
4 days ago

Schools get £500m for energy upgrades this winter

Extra cash found for better heating controls, insulation and energy efficient lighting
4 days ago

1,000-home North London scheme approved

Developer Hill will start work in the Spring on South Tottenham site
4 days ago

Bid race for £500m Suffolk construction framework

Construction and building services firms called up for East of England four year deal
4 days ago

Mace employs robot dog to avoid slip and trips in tunnel

Robot working in dark and hazardous conditions under Heathrow Airport
4 days ago

Administrator details confirmed at Southampton M&E firm

Begbies Traynor now in charge at Working Environments as suppliers face large losses
5 days ago

Former Galliard chief takes helm at Inland Homes

New CEO Don O'Sullivan sets out to return south east house builder to profitability
4 days ago

Applicant numbers nosedive for construction vacancies

Recruitment market gets even more competitive - how the Enquirer can help
5 days ago

Industry veteran to head Henry Bros northern arm

Peter Commins, former Kier and Balfour Beatty northern chief, to spearhead growth drive
4 days ago

Contractor services