Armstrong Watson helps Aaron Engineering Group secure funding package beyond expectations

Background

Aaron Engineering Group Ltd (AEG), is a leading engineering and infrastructure services business and an existing Armstrong Watson audit client. The business approached our Funding and Debt Advisory team after its existing invoice finance arrangements were no longer fully supporting its needs for growth.

AEG wanted to secure a replacement funding facility that would increase available working capital and provide a stronger platform as the business continued to expand.

Audit Partner Lauren Graham introduced AEG to Funding and Debt Advisory Partner Lee Hayes.

Finding the right solution

Lee and the team carried out a detailed review of AEG's existing funding arrangements, current requirements and future ambitions before taking the opportunity to market, preparing detailed funding proposals and negotiating potential terms.

This competitive funding process resulted in AEG ultimately selecting a package offered by Arbuthnot Commercial Asset Based Lending Ltd.

The successful solution combined Invoice Discounting with a Revolving Credit Facility, providing substantially greater funding capacity together with significantly more flexibility than the arrangements previously in place.

Most importantly, the outcome exceeded AEG's original expectations - a funding package worth approximately double the level it had initially hoped to achieve.

Results

The additional funding headroom has provided AEG with increased working capital capacity to support its ongoing growth plans, while the revised structure offers greater flexibility to manage future opportunities.

Importantly, the lender selected was not one AEG had previously encountered.

Commenting on the transaction, John Lowndes, CEO of Aaron Engineering Group, said:

"We're a growing business and very ambitious. Until now, we had largely been self-funded with a small working capital facility, but we identified that our growth plans required additional funding support. Lee Hayes and his team led us through the process and made the transaction effortless on our part. Meetings were concise and focused, freeing up valuable time, but it was clear that plenty of work had been done in the background. We are delighted with the outcome of the fundraising exercise and look forward to working with Armstrong Watson as a key advisory partner moving forward."

Lee Hayes, Partner in Armstrong Watson's Funding and Debt Advisory team, said: "Many businesses approach us looking for what they believe is a straightforward refinancing exercise. However, by taking the time to understand their objectives, reviewing the wider funding market and creating a competitive process between lenders, we can often identify solutions that deliver significantly more value than originally anticipated.

"In Aaron Engineering Group's case, the outcome was not just a replacement facility, but a funding package that provided around twice the level of support the business initially expected, together with greater flexibility to support its future growth ambitions."