Growth by Acquisiton

Ambitious company operating in the equipment hire sector seeking to acquire a key local competitor whose owners were approaching retirement and wanted to sell the business.

Objectives

  • Secure the acquisition of the business against other interested parties
  • Raise the necessary borrowing to fund the acquisition
  • Structure the deal in the most tax efficient way for our client

What we did

  • Reviewed and valued the acquisition opportunity, advising on whether, in our view, the client should make an offer for the business and at what level
  • Negotiated a price for the business in a competitive situation against other interested parties
  • Carried out the financial due diligence on the target business, advising the client of any areas of concern
  • Prepared and presented a detailed funding proposal to several banks in order to secure the best offer of funding
  • Worked closely with the client’s solicitors to ensure the deal proceeded as efficiently as possible
  • Project managed the transaction through to completion

Results

  • The client acquired the business for a competitive price and was able to successfully integrate the business into its own operations
  • Secured bank funding of £900,000 to not only fund the acquisition but to provide additional working capital for the expansion of the existing business