An Electrical Contractors (£4M Turnover: Management buy-in at £6M Valuation)

Problem/Situation:

A client who owned an electrical contractor business was nearing retirement and was looking for ways to plan for his succession and eventual exit. He had found a competitor management team who were interested in buying into the business, but they did not have the requisite funds. Neither the client nor the incoming team had any experience of corporate finance transactions.

Solution:

Shaun Walsh liaised, in conjunction with a broader CF team, with the client and the incoming management to develop agreed understandings of business valuation, deal structure and future risk reward mechanisms. Shaun managed to keep the parties together during at times fraught and fragile discussions reconciling widely divergent perceptions of value to everyone’s satisfaction. He then presented forecasts which gave transparency to the deal structure and formed the basis of a bank loan to finance the deal.

Results:

New management were successfully introduced into the business, bank finance was obtained and the deal completed to everyone’s satisfaction.