Empowering management to accelerate growth through ownership and strategic investment

Cursor Controls can trace its roots back more than 75 years as a direct descendant of the Marconi Company, which first developed trackerball technology for military radar systems during the 1940s.

Today, the business designs and manufactures human-machine interface products for medical, industrial and transportation markets, offering one of the world's largest ranges of industrial trackballs, trackpads and hybrid technology solutions. With more than 1,500 product variants distributed across over 30 countries, the business has built a strong international reputation for innovation, engineering expertise and customer service.

By the time Maven became involved, Cursor was emerging as a global market leader in the design and manufacture of industrial trackball solutions. More than 90% of sales were generated from international markets and the business had established a strong track record of growth. As two of the founding shareholders began planning their exit, the management team saw an opportunity not only to take ownership of the business, but also to accelerate its next phase of development.

For Managing Director Neale Sutton and his team, selecting the right investment partner was about more than securing funding for the buyout. It was essential to find a partner that understood the business, shared its customer-centric culture and could support its long-term growth ambitions.

"It was essential to us that any incoming party understood and fully supported the customer centric ethos that had made Cursor so successful to that point, whilst also sharing our exciting vision for the future," says Neale.
Operating in a specialist engineering market, the management team wanted an investor capable of understanding both the technical and commercial dynamics of the business.
"Any potential investor had to understand the nuances of the markets we supply," explains Neale. "That is largely what set Maven apart from the first meeting, where their team demonstrated a genuine enthusiasm for the business and a clear alignment with our objectives and growth ambitions."

For Maven, Cursor represented an opportunity to back an experienced management team leading a well-established business with a clear growth strategy and a significant acquisition opportunity already identified.

"The business had established a reputation for technical expertise and innovation and was widely regarded as a market leader in its field," says Andrew Ferguson, Partner at Maven. "The management team, led by Neale Sutton, was also highly capable and had demonstrated that they had the collective skills, experience, vision and commitment to continue the growth of the business."

One of the defining aspects of the transaction was Maven's willingness to look beyond the immediate requirements of the management buyout and structure the investment around the company's longer-term strategic objectives.

Prior to the buyout, management had identified a highly attractive acquisition opportunity that was expected to accelerate growth, strengthen the company's position in mainland Europe and support the next stage of its development. Ensuring sufficient capital remained available following completion of the buyout was therefore a critical consideration.

"We found the discussions with Maven to be very constructive," says Neale. "Arguably the most valuable contribution during the early stages of the investment was their experience and flexibility with respect to the financial structuring of the buyout."

Shortly after completion of the buyout, Cursor acquired Belgium-based NSI, its largest customer. The acquisition expanded its footprint in mainland Europe and enhanced collaboration on product development. Bringing together two highly complementary businesses also provided greater scale, strengthening the enlarged group for future growth.

Beyond financing the transaction, Maven worked with management to identify a number of opportunities to strengthen the business and prepare it for life as a private equity-backed company. This included supporting the recruitment of an experienced Finance Director and Chairman, helping ensure the organisation had the leadership capability required to execute its growth plans.

"Maven played an important role in the process of bringing on board a new Finance Director and Chairman who complemented our existing team perfectly," says Neale. "These additions not only brought significant board leadership experience and provided invaluable guidance and support, but it also meant that we were well positioned from the outset to deliver on our strategic objectives."

Maven also worked closely with management and external debt providers to create a funding structure that facilitated both the management buyout and the planned acquisition strategy.

"Maven proved very supportive, joining negotiations with external debt providers to secure the best terms possible and structuring their own investment to allow us to effectively prefinance the acquisition," Neale explains. "This approach demonstrated their commitment to backing the management team and allowed us to move forward with the proposed acquisition immediately following the MBO."