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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

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