| Funding
for mergers and acquisitions
Mergers and acquisitions are complex transactions and are
alternative or complementary routes to business expansion.
In addition to funding the working capital requirements of
the business, the acquisition costs must also be met by the
acquiring company.
Focusing on invoice finance will allow your company to raise
the funding it needs to fund an acquisition, as well as guaranteeing
sufficient cash flow to allow the enlarged entity to continue
trading and growing – all without diluting the ownership of
the new business.
Simply click on the links below to have a look at case studies
where we have helped our clients fund their merger or acquisition.
To DEALS ARCHIVE
Menu >>
£1.5m Environmental Consultant and Instrumentation
Distributor
£1.5m funding to purchase a complementary business
and fund ongoing working capital requirements
Our client is effectively a scientific analysis
group, offering a range of services through three different
companies. The first of these companies provides a range of
environmental testing services, including analytical methods
applied to incineration and combustion processes, pharmaceutical
product registration, contaminated land and ambient air assessment.
Internationally accredited by UKAS and with a GLP status,
this arm of the business is well established, having built
up a firm reputation.
The second of these companies is an environmental
consultancy agency, set up in 1996 and providing advisory
services on areas such as contamination of landfill sites
and air quality within the workplace. Also accredited by UKAS
and with STA certification, this arm of the group has experienced
rapid growth since incorporation, as it becomes increasingly
established within the marketplace.
The final arm is an instrumentation business
that has developed a range of specialist instruments based
on unique technology, currently being patented, providing
market-leading capability. With an imminent product launch
expected, our client has developed a comprehensive marketing,
sales and distribution strategy, which coupled with plans
for subcontracting and continuing development of new instruments,
will allow our client to maximise the earnings potential of
its product capability.
As outlined above, the combination of the
range of skills and expertise within the group, their wide
range of accreditations and solid investment in technology
and product development has allowed our client to carve out
a very strong niche for itself.
In order to support their robust growth strategy,
our client wished to acquire a small testing business in the
South of England, to complement the existing environmental
services.
Introduced to the deal by the corporate finance
arm of a large accountancy firm, EFE delivered the
funding required to cover both the acquisition consideration,
plus the working capital facility needed to ensure this group
maintains it’s successful trading momentum into the
future.
Let us help you unlock the potential of your business or investment
- contact
us today.
back to top >>>
£13m Recruitment Company
£13m facility to fund an acquisition and refinance existing
facilities
A recruitment specialist for the construction
industry, our client provides temporary mechanical and electrical
staff to the top 50 construction companies. Based in the North
East and with offices in London, Lincoln, Bristol and Scotland,
our client comprises of a number of companies within the same
industry, each with a list of skilled tradesmen available
for hire, within varying niche markets.
Founded in 1996, the company has successfully
grown since inception, through organic growth and acquisitions
of similar businesses.
In order to extend their services beyond
current specialities, our client plans to acquire a general
construction placement company, who supply plasterers, general
builders, construction workers and decorators on a temporary
basis.
In order to facilitate implementation of
this strategy, EFE was called in to generate
the funding required for the purchase consideration, and also
to consolidate the receivables book across all group companies.
The net result is a £13m funding line that will replace
3 separate invoice finance providers, provide the required
acquisition funding and sufficient working capital to ensure
the business maintains it’s growth trajectory into the
future.
Let us help you unlock the potential of your business or
investment - contact
us today.
back to top >>>>
£10m Haulage and Coal Stock
Holding
£10m refinance to fund ongoing growth and acquisition
strategy
Our client is a bulk haulage business, set up in 1990, predominately
transporting coal and other aggregates for customers. The
business operates a very modern, highly efficient fleet, using
superior technology to control operations, such as vehicle
tracking and route management. The principal customer base
is comprised of blue chip companies dealing in large volumes
and long-term contracts.
With high barriers to entry for new competition
and recession resistant sales, due to the commodity nature
of the products being transported, our client has demonstrated
an even turnover and steady growth. Costs are dominated by
diesel and wages, though our client has gained huge benefit
from economies of scale and bulk purchasing power.
Our client is also involved in waste haulage,
a significant growth industry and carbon based product import
and processing.
Currently with the invoice finance provider of a large UK
bank, our client has become seriously disenfranchised with
the lack of experience and service from their client management
team. Preferring to deal with a niche provider who can deliver
expertise and support on an ongoing basis, our client decided
to avail of a robust finance structure from EFE, including
both an invoice and supplier finance facility. This will allow
them to continue with their ongoing business and acquisition
strategies into the future, all with the support of a dedicated
and experienced finance team.
Let us help you unlock the potential of your business or
investment - contact
us today.
back to top >>>>
Bangers 'n' Shap
£6.3m acquisition from receivership of KingsCourt Foods
Ltd
Yorkshire-based J&J Tranfield Ltd, have
become the UK’s largest sausage manufacturer, with the
£6.3 million acquisition from receivership of frozen
sausage producer KingsCourt Foods Ltd which is located at
Shap in Cumbria.
Simon Allport and Gary Wilson of Ernst &
Young were appointed Joint Administrative Receivers to KingsCourt
Foods Ltd, which employs over 200 staff. £25 million
turnover, KingsCourt will now be known as Tranfield of Cumbria.
The company also has a small operation in Stoke on Trent in
the Midlands.
Funding the acquisition for Sheffield-based
J&J Tranfield is Enterprise Finance Europe (EFE), one
of the UK’s leading asset based lenders with Ford Campbell
Corporate Finance advising the company. Tranfield, which gained
entry to the Guinness Book of Records in 2000 for making the
longest ever sausage at 35.75 miles long, underwent a management
buy-out, also backed by EFE, in May 2003.
Tranfield director, Alistair MacDonald said
he was delighted with the strategic acquisition. “Both
Tranfield and KingsCourt have strong market positions in this
lucrative growth sector.
“Working with the KingsCourt management
team and our new staff, this acquisition will enable us to
diversify our customer base and also provide the opportunity
to offer our existing core product range through an enlarged
customer base.”
Based on Main Street in Shap, near Penrith
in Cumbria, KingsCourt manufactures frozen sausages and also
produces some rib and poultry products in Stoke on Trent.
The company was the subject of a MBO from Perkins Food Group
in 2003.
Simon Allport, partner with Ernst & Young
in Manchester commented: “We are delighted to have reached
a successful sale for the business. This is a good result
for the business, its employees and its customers and suppliers.”
Enterprise Finance
Europe, said the deal enables Tranfield to further pursue
its ongoing strategy to use the company as a platform to create
a £100 million plus food manufacturing group.
Let us help you unlock the potential of your
business or investment - contact
us today.
back to top >>>>
£1m Accounting Software Reseller
£1m to effect merger of two competitive businesses
Specialising in the implementation and support
of business systems authored by a well-known accounting software
provider, our client is availing of a consolidation opportunity
that has arisen in their marketplace.
The owner of one of our client’s competitors
is looking to retire from the day-to-day running of the company
that he has managed for the past 25 years. As a result, the
business is available for sale and provides the potential
for our client to expand their business customer base and
turnover, while realising merger cost synergies.
By combining a flexible and robust invoice
finance solution and senior term debt facilities, Bank
of Ireland Corporate Banking & Enterprise Finance
Europe, were able to deliver a funding package to meet the
required purchase consideration and provide sufficient headroom
to support the range of initiatives required to develop the
business going forward.
Let us help you unlock the potential of your
business or investment - contact
us today.
back to top >>>>
|
