Case Study: 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
     

The deadline for April 2021 claims is 14 May 2021, so please submit claims to jrs@armstrongwatson.co.uk.