Tag Archives: corporate finance

Accountancy & Accounts, Appointments, News

Dealmaker Max Perry gains promotion at HURST

A dealmaker at independent accounting and business advisory firm HURST has been promoted to associate partner.

Max Perry joins the HURST board as a result of his promotion from associate director.

He has completed a range of transactions involving UK and overseas trade buyers and private equity buyers since joining HURST’s corporate finance team in December 2021 after roles at Deloitte and corporate finance boutique Camlee Group

His deal highlights at HURST include advising the shareholders of Huddersfield-based PCS Asbestos Consultants on the company’s sale to AIM-listed Marlowe, acting for the shareholders of financial advisory firm Financial Management Bureau on the sale of the Cumbria-based business to Finitor Wealth, and advising north west IT and telecoms solutions provider Active on its sale to technology company Babble.

Max is among a group of HURST’s rising stars who are taking part in a bespoke two-year leadership development programme.

HURST is the first accountancy firm headquartered in the north to launch a Vistage Inside programme for future leaders. Vistage, with 45,000 members worldwide, is a global leader in personal development and advisory groups for CEOs, key executives and leadership teams.

Nigel Barratt, partner and head of HURST’s corporate finance team, said: “Max has played a leading role in growing our business by successfully completing transactions with UK and international trade buyers and private equity buyers.

“He is currently working on a number of transactions, has brought new clients to the firm and has built strong relationships with existing ones. He’s passionate about developing team members and actively supports and mentors his colleagues.

“His promotion is well-deserved and we look forward to seeing Max continue to flourish as our corporate finance practice expands further.”

Max said: “I’ve thoroughly enjoyed my time at HURST so far and I’m especially grateful to Nigel, corporate finance partner Ben Bradley and Mike Jackson, the head of our business services team, for their guidance to date.

“I’m absolutely delighted to receive this promotion and to have been invited to join the board. The firm is so full of talented individuals, and the future is incredibly exciting. It’s an honour to be asked to play my part in it.”

HURST focuses on advising entrepreneurial owner-managed businesses with turnover of £10m and above across all sectors. Clients include Kinaxia Logistics, M&I Materials, Beechfield Brands, Duerr’s, Oliver Valves, Lancashire County Cricket Club, Krones UK, Creamline Dairies, Arighi Bianchi, Scapa Group and Hyde Group.

The firm will move its head office to a new flagship development in Stockport later this month to accommodate its growing team. HURST is taking 11,000sq ft at 3 Stockport Exchange, the latest phase of a £145m project by Muse Developments and Stockport Council.

It has been based since 1998 in Tiviot Dale in Stockport town centre, but has outgrown those premises. The new HQ will give the firm scope to expand from 120 staff to around 170, which it aims to achieve over the next three years.

News

New era for Harper McDermott with sale to Employee Ownership Trust

LEADING personal insolvency firm Harper McDermott Ltd, one of the largest providers of Protected Trust Deeds and Debt Payment Plans under the Debt Arrangement Scheme in Scotland is embarking on an exciting future after transferring to employee ownership in a transaction led by business advisers Grant Thornton UK LLP.

The Glasgow-based company trades as Trust Deed Scotland, which, since 2009, has helped more than 25,000 people resolve their problem debt. The Trust Deed Scotland brand was founded by Mark Sommerville and Jon Paul Kelly and is the best-known provider of Protected Trust Deeds in Scotland. It has an industry leading No.1 ranking on Trustpilot in the debt relief service category with over 5,000 5* reviews from Scottish customers.

The business is currently managing debt solutions for over 9,000 customers with £234m of debts under management, and a team of around 70 people – who are all now part-owners of the business – led by Managing Director and Insolvency Practitioner, Thomas Fox.

Thomas Fox said: “I am delighted to have become a part-owner in the business alongside our knowledgeable and experienced team, who I believe provide a best-in-class service to our customers.”

“We are all looking forward to the future with excitement and confidence and to helping many more people deal with their debt issues in a practical and compassionate manner.”

“Employee ownership provides many benefits; from existing staff retention through to attracting the best talent, it gives our team job security and brings us closer together as one team all working towards similar goals.”

“I am very grateful to the Grant Thornton team for leading us through this transition with such dedication and diligence.”

Neil McInnes, Partner and Head of Corporate Finance in Scotland at Grant Thornton said:

“We have been working with the business to help them consider the range of strategic options open to them.”

“Ultimately the best option for all stakeholders was to move to employee ownership via an Employee Ownership Trust (EOT), which gives the entire team a stake in its future success and provides a great incentive for staff loyalty.”

“We are seeing an increasing number of profitable mid-sized companies looking at EOT as an option. For exiting shareholders it can be an attractive alternative to the more traditional trade sale or private equity process, and allows the business to continue to thrive in the safe hands of the incumbent team.”

“We wish Thomas and the whole team at Harper McDermott every success in the future.”

Neil was assisted in the transaction by Akshay Sharma and the firm’s dedicated EOT team led by Monique Beaulieu and supported by Ollie Dewdney and Amarveer Johal, which provide a holistic end-to-end service advisory service to businesses transitioning to employee ownership.

News, South East

Gloomy economic forecasts fail to dampen mood for East of England businesses

Despite gloomy economic forecasts, business leaders in the East of England are optimistic about their growth opportunities for the year ahead.

According to data from Grant Thornton UK LLP’s latest Business Outlook Tracker*, mid-market optimism in the East of England has rebounded across all indicators monitored:

Revenue growth expectations have risen +37 percentage points (pp) since October

Economic optimism has risen +35pp since October

Profit growth expectations are rising – increasing +17pp since October

The results indicate that businesses are confident they can weather this economic downturn. Optimism regarding their funding position has risen +39pp since October. Over half (62%) are also confident that they have sufficient working capital to manage the impact of a recession for six months or more.

The top concerns for the region’s mid-market heading into 2023 are winter blackouts, geopolitical tensions and the rising tax burden, all of which they feel sufficiently prepared to manage.

The mid-market continues to struggle to attract and retain talent, with 65% of respondents experiencing unusually high attrition rates. Over half (60%) are also struggling to recruit for open roles.

But employers are pulling out all the stops in a bid to remain competitive. Just under three quarters of respondents (73%) are planning to offer their people a pay rise in line with, or above, inflation, while 90% are also reviewing their employee benefits package to make it more competitive. Almost half (46%) are planning to invest more in skills development over the next six months.

The research also finds that the mid-market is starting to look for ways to reduce its reliance on people, with over two thirds (67%) agree that they are increasing their use of automation and digital.

James Brown, Partner and Practice Leader at Grant Thornton UK LLP in the East of England, said: “It is surprising that the market’s positivity levels are at odds with the forecasts from the Bank of England and the government. Optimism levels have rebounded significantly since October, when the shock and uncertainty from the mini-Budget plummeted mid-market optimism to some of the lowest recorded in our Tracker. The certainty provided since seems to have reassured the market.

“Even though we know the economy and operating conditions are not likely to improve much in the short term, it is perhaps better to have bad news over uncertainty. Certainty over the future allows businesses to work this into their forecasts and take action to soften the impact.

“While a potential recession is often in the headlines, our survey shows that the labour market remains a concern. Employers are trying to improve efficiency and productivity, while also managing cost levels, which is demonstrated by high investments in technology and people. It is interesting to note the focus on skills development, which shows a commitment to making staff more efficient as well as a desire to manage retention levels and costs.

“Having seen first-hand how our region responded to the challenges of recent years with determination, flexibility, enterprise and innovation, I am confident that businesses in the East of England will find a way to survive and thrive during the months ahead. Given the encouragingly high optimism levels, it would seem that the local market shares this confidence.”

Midlands News, News

West Midlands ready to ride the storm amid gloomy financial forecast

Despite gloomy economic forecasts, business leaders in the West Midlands are optimistic about their growth opportunities for the year ahead.

According to data from Grant Thornton UK LLP’s latest Business Outlook Tracker*, mid-market optimism in the West Midlands has rebounded across all indicators monitored:

Profit growth expectations have grown +47 percentage points (pp) since October

Revenue growth expectations have risen +33pp since October

Economic optimism has risen +29pp since October

The results indicate that businesses are confident they can weather this economic downturn. Optimism regarding their funding position has risen +37pp since October. Over half (60%) are also confident that they have sufficient working capital to manage the impact of a recession for six months or more.

The top concerns for the region’s mid-market heading into 2023 are industrial action and the rising tax burden, both of which they feel sufficiently prepared to manage.

The mid-market continues to struggle to attract and retain talent, with 56% of respondents experiencing unusually high attrition rates. Over half (56%) are also struggling to recruit for open roles.

But employers are pulling out all the stops in a bid to remain competitive. Over three quarters of respondents (78%) are planning to offer their people a pay rise in line with, or above, inflation, while 92% are also reviewing their employee benefits package to make it more competitive. Over a third (44%) are also planning to invest more in skills development over the next six months.

The research also finds that the mid-market is starting to look for ways to reduce its reliance on people, with over three quarters (88%) agreeing that they are increasing their use of automation and digital.

James Brown, Partner and Practice Leader at Grant Thornton UK LLP, said: “The market’s positivity levels are surprisingly at odds with the forecasts from the Bank of England and the government. Optimism levels have rebounded significantly since the shock and uncertainty from October’s mini-Budget plummeted mid-market optimism to some of the lowest recorded in our Tracker.

“The certainty provided since last October seems to have reassured the market. Even though we know the economy is not likely to significantly improve in the short term, it is perhaps better to know what is happening even if the news is bad rather than grappling with surprises that can’t be planned for.

“While a potential recession seems to be looming, our survey shows that the labour market remains a concern. Employers are trying to improve efficiency and productivity, while also managing cost levels, which is demonstrated by high investments in technology and people.

“Having seen first-hand how our region responded to the challenges of recent years with determination, agility, enterprise and innovation, I am confident that businesses in the West Midlands will find a way to survive and thrive during the months ahead. Given the encouragingly high optimism levels, it would seem that the local market shares this confidence in its prospects for 2023.”

Fashion, News

Grant Thornton completes deal hat-trick for ethical fashion group

A team from Grant Thornton UK LLP Transaction Advisory Services has advised on a hat-trick of transactions for an ambitious UK-based ethical fashion group, Refined Brands.

Having supported Refined Brands on the acquisitions of Frugi and Turtle Doves in late 2022, the team led by consumer sector specialists, John Panteli and James Pitts, has now advised on Refined Brand’s purchase of Kettlewell Colours, a Somerset-based ethical women’s fashion brand.

Founded in 2004 by Melissa Nicholson and her husband John, Kettlewell Colours has annual sales of nearly £9m. It sells wardrobe essentials in over 300 colours to customers internationally – working predominantly with small, family-run factories in Portugal, Turkey and the UK who share its environmental values.

Kettlewell Colours becomes the fourth brand in Refined Brands’ portfolio, which also includes Cornwall-based footwear and outerwear brand Celtic & Co. All share the same ethical and environmental values, using sustainable materials and working to a circular fashion model.

The Grant Thornton team provided financial and tax due diligence on both the Kettlewell Colours and Turtle Doves deals and buy-side support on the pre-pack acquisition of Frugi – which included support from the firm’s restructuring team (Alistair Wardell and Will Robinson).

John Panteli, Grant Thornton’s Head of Transaction Advisory Services in the South said: “With increasing consumer awareness over the environmental impact of the clothes we buy, Refined Brands has a clear and compelling strategy to build a differentiated group of brands with the highest ESG credentials.”

“We are delighted to have advised on these three important acquisitions and look forward to supporting the Refined Brands team as it continues its selective buy and build growth strategy.”

Refined Brands was founded in February 2021 by Refined Capital Partners, the investment company for a group of leading fashion industry figures including Ben Barnett, former CEO of TFG London (owner of the Phase Eight, Whistles and Hobbs brands) and retail veterans Michael Rahamim and Lee Harlow.

The group is funded by the team, in partnership with HSBC, Kvika Bank and Souter Investments, the family investment office of Stagecoach co-founder, Sir Brian Souter.

News

Grant Thornton in top gear with £182m sale of Motor Parts Direct

Grant Thornton UK LLP’s corporate finance team has advised on the sale of Motor Parts Direct Group, the UK’s leading independent retailer of after-market car parts and accessories. 

The privately-owned Hertfordshire-based company, which had annual sales of £158m (2021), 175 branches nationwide and over 1,700 employees, has been acquired by Motus Holdings, South Africa’s leading automotive group for £182m. 

The acquisition significantly strengthens Motus’ UK and European presence and gives it a strong market position in the UK after-market parts sector. 

The shareholders of Motor Parts Direct, were advised by a team led by partner Mike Tillson, assisted by Ryan Shields, Calum McDonald and Misha Brooks. Grant Thornton also provided due diligence and tax structuring services on the transaction – demonstrating the power of its complete M&A solution.   In a statement, the board of Motus Holdings said: “The acquisition is aligned to Motus’ international growth strategy for the after-market parts business and will reduce the Group’s dependency on vehicle sales.   “The acquisition will provide economies of scale, group procurement benefits and synergies. The business is cash generative and asset light. The existing management team, excluding any members of the family, are committed to remain and grow the business. Key management have been secured and are committed to continue managing the business into the future.” 

Mike Tillson said: “The rise of Motor Parts Direct is a classic entrepreneurial growth story. From starting the business in 1999 from his Hertfordshire living room to building a market-leading multi-million enterprise, Mukesh Shah MBE, the shareholders and the management team have created an exceptional market-leading business.” 

Mr Tillson added: “Despite some clear economic headwinds, M&A is still very much on the agenda, and a number of overseas buyers remain keen to acquire quality UK assets.” 

Other advisers working on the transaction on the sell side includes law firm Freeths,  Jonathan Hambleton and James Cowell (corporate) and Sam Pancholi (property). 

Motus Holdings were advised by a team from law firm Irwin Mitchell led by Emma Callow. 

FInance, Finance and Banking, News, South East

Grant Thornton advises Norfolk entrepreneurs on strategic sales

A CORPORATE finance team from Grant Thornton UK LLP has advised on two key deals in Norfolk within a week, as the firm continues to lead the way in the East Anglia region.
The first transaction saw listed Midland building materials company Epwin plc acquire Norwich-based plastics recycling specialist Poly-Pure for £15m.
Founded four years ago, Poly-Pure is a fast-growing materials re-processor, recycling post-consumer and post-industrial PVC building materials, notably UPVC window frames and was seen as a strong strategic fit by Epwin.
In Poly-Pure’s financial year ended 31 July 2022, it expects to report revenues of £10m and adjusted EBITDA of £2.5m.
The second transaction, which was also led by Corporate Finance Director Stuart Davies, was the sale of Computer Service Centre Limited by its founders Christopher Cooper and Jeremy Clarke to private-equity-backed managed IT services provider Acora.
Founded 25 years ago, the Norwich-based company has 60 staff and is a leading provider of IT managed services to more than 100 SMEs in the South and East of the UK.
The acquisition, for an undisclosed sum, was Acora’s seventh in the last five years and enables it to offer a new service line in the 50-250 user market,
Stuart Davies of Grant Thornton said: “We are delighted to have delivered excellent outcomes for the entrepreneurs behind Poly-Pure and Computer Service Centre. In both cases there are compelling reasons for the sales and both companies will now be able to accelerate their already impressive growth by being part of larger businesses.
“Despite a more challenging economic environment,  the M&A market remains strong in Norfolk and East Anglia alike,  with continuing trade and Private Equity appetite for good quality businesses , which is reflected in both these excellent deals.”
Mr Davies was assisted by Adam Furrer in the Computer Service Centre transaction and Ned Brown on the Poly-Pure deal.
News

Grant Thornton completes double deal as international investors target Scottish leisure sector

Grant Thornton UK LLP’s Corporate Finance team in Scotland has advised international buyers on two acquisitions of leisure-related businesses, amid strong interest in the sector as it recovers from the pandemic.
Over the last month, Grant Thornton has advised French event infrastructure specialists GL Events on their acquisition of Edinburgh-based Field & Lawn, and advised on the acquisition of Castle Stuart Golf Links by leading international golf resort developer Cabot.

Founded in 1986, Edinburgh-based multi-service event specialist Field & Lawn Ltd has four business offerings; event marquees and structures, temporary industrial buildings, placemaking and festive lighting solutions. Major events include Six Nations rugby events and Christmas light displays across the country, complementing GL Event’s current offering, enhancing its all-year round revenue stream.

Meanwhile, Canada-based Cabot has committed to significantly investing in the Castle Stuart course, which is located near Inverness in the Highlands and is regarded as one of the best golf courses in Scotland, having hosted the Scottish Open four times, Cabot’s plans for the resort, which will be renamed Cabot Highlands, include adding a second 18-hole course and building luxury homes, dining and retail facilities.

Advising on these two acquisitions in the buoyant leisure sector marks a strong end to the first half of the year for Grant Thornton’s Scottish Corporate Finance team.

Neil McInnes, Corporate Finance Partner at Grant Thornton UK LLP, said: “The pandemic and related social restrictions took its toll on everyone, especially those businesses operating in the leisure sector.
“Now, as we enter our first summer post-pandemic, we are really witnessing an uptick in deal activity, as leisure, hospitality, travel, events and other sectors alike, are all beginning to flourish.

“With these two acquisitions we have seen international buyers attracted to high-quality, strategic Scottish businesses, reinforcing the continued interest from foreign investment in Scotland, and the wider UK, as a marketplace. It is not just leisure we are seeing this in, it is across a broad spectrum of sectors, including technology, healthcare and ESG.”

News, South East

Grant Thornton leads sale of Davidson-Roberts as nursery sector hots up

Grant Thornton UK LLP’s Corporate Finance team has advised on the sale of nursery group Davidson-Roberts Ltd to the rapidly growing private equity-backed Family First Nursery Group, which is expanding its footprint across England.  

Established in 2006 in Cambridgeshire, Davidson-Roberts has gone on to acquire nine more nurseries across Northamptonshire, Bedfordshire and Hertfordshire. A number of its nurseries offer children Forest School sessions focused on encouraging a connection with the natural world.  

The acquisition of Davidson-Roberts will support Family First’s strategic plan to grow within commuter belts, metropolitan cities and areas of population growth, recognising that many parents are now working flexibly in the post-Covid era.  

Founded three years ago, Family First Nursery Group is backed by PE investor August Equity and aims to become one of the leading childcare providers in the UK. The latest acquisition follows a string of M&A activity, with the group completing six deals this year so far, with a target of reaching 80 sites by the end of this year. 

Jane Roberts, Founder of Davidson-Roberts Ltd, said: “The successful growth journey of Davidson-Roberts over the last 15 years is down to the passion for the sector, from the whole of the team. I have loved the experience, leading the businesses growth, and now look forward to this next, exciting chapter.  

“Family First Nursery Group is a company that shares our own values and is ready to take Davidson-Roberts, and the team, to the next level.” 

Family First Nursery Group is led by Chairman Andy Morris, who has a strong track record in growing children’s nursery groups, having taken Asquith Nurseries to 92 nurseries before selling to Bright Horizons, the second largest chain in the UK. He subsequently helped grow the OAC Childcare Group in Australia from 24 nurseries to 79.  

Craig Grant, Family First’s Corporate Development & Strategy Officer, said: “We were incredibly impressed by the group of nurseries Jane has built and believe Family First provides a great platform to take these nurseries, their teams, children, and parents onto the next phase of their journey/!.     

The sale of Davidson-Roberts marks the latest transaction in the nursery and wider education market by the Grant Thornton team, following the sales of The London Preschool Group to Three Little Birds Nurseries, Kew and St Margaret’s Montessori Nurseries to Dukes Education, refinancing and raising an acquisition facility for Storal, acting for Kids Planet on their acquisition of Kids Allowed and raising additional financing facilities for Kids Planet to support their continued growth.  

Alongside its M&A support, Grant Thornton’s Tax team provided support on the complex demerger of the properties from the operating company as part of the transaction. After an initial introduction, the Sell Side Transaction Tax Team advised on implementing the demerger ahead of first round offers, to minimise tax costs and a deliver an effective solution for the shareholders.  

Mike Tillson (Partner), Andrew Frame (Director) and Elizabeth MacGowan (Manager) at Grant Thornton advised on the sale, working closely with Julie Hughes, partner at Cripps specialising in transactions in the Early Years sector, who along with her team, managed the legal aspects of the sale.  

Andrew Frame, Coporate Finance Director at Grant Thornton UK LLP, said: “Over the last year, we have seen a combination of a fragmented marketplace, increased regulations, and a new normal in flexible working, all leading to record-levels of deal activity across the nursery sector.  

“There continues to be significant interest from PE-backed groups and international trade consolidators, as well as strong support from the debt market fuelling growth. Our team has provided advice on a number of deals across service lines, and we only expect activity to drive onwards.  

“During the sale process we generated considerable interest in Davidson-Roberts from domestic and international buyers across private equity and trade, resulting in a great outcome for our client and a terrific home for the business in Family First.” 

Mike Tillson, Corporate Finance Partner at Grant Thornton UK LLP, said: “It’s a great time to be a seller in the sector, with valuations at record levels and a number of very eager domestic and overseas buyers keen to acquire good quality nursery operators in the UK.” 

News

Grant Thornton’s Corporate Finance team continues hot streak in the Services to the Built Environment market with sale of Asset Plus to Johnson Controls

Grant Thornton UK LLP’s Corporate Finance team has completed its fourth major facilities services to the Built Environment (“FM”) deal of 2022, with the sale of Hampshire-based Asset Plus to New York Stock Exchange-listed Johnson Controls.  

Specialising in decarbonisation, Asset Plus delivers sustainability savings for multiple NHS organisations, local authorities, and education establishments. It provides strategic support and project management for energy efficiency measures across complex built environments.  

The acquisition complements Fortune 100-ranked Johnson Controls’ established presence in the UK public sector, which has seen it appointed as a supplier under five key procurement frameworks including the Re:Fit Programme and the Carbon and Energy Fund (CEF). The NHS recently selected Johnson Controls for its National Framework Agreement for the provision of Smart Building Solutions using the Internet of Things (IoT).  

Paul Burnett, Co-Founder and Managing Director of Asset Plus, said: “Grant Thornton were instrumental in achieving the best valuation for our business. Their support and advice during the transaction process was exceptional. 

“Johnson Controls is the global leader for smart, healthy and sustainable buildings and a perfect fit for Asset Plus, providing a unique opportunity to pivot our energy performance model to other market sectors and expand our offering, transitioning the business into the next phase of growth.” 

Chris Aldred, Commercial Director at Asset Plus, said: “Grant Thornton were instrumental in achieving the best valuation for our business. Their support and advice during the transaction process was exceptional.” 

David Lloyd, Head of Connected Buildings at Johnson Controls UK&I, said: “We are very excited to announce that we have completed the acquisition of Asset Plus, one of the UK’s leading independent experts in the design and project management for implementation of decarbonisation and energy efficiency offerings.  

“Its services will further enable Johnson Controls to deliver a turnkey net zero offering to all our UK clients, across all sectors, supporting us to deliver on our promise to create a safe, comfortable and, most importantly, sustainable world.” 

The sale of Asset Plus marks another deal completed in an active built environment sector for Grant Thornton’s Corporate Finance team, following the sale of ISS Damage Control, Total Security Solutions and Incentive FM Group in the first half of 2022.  

Usman Malik, M&A Partner and Head of Business Services at Grant Thornton UK LLP, said: “Asset Plus generated a lot of interest when looking for potential buyers, as a result of the companies impressive rapid growth. In just six years, the business has grown to a £30m turnover and the sale to Johnson Controls marks another landmark chapter that will return pleasing multiples to investors.  

“The Built Environment services market is one where the Grant Thornton team continues to be highly active on a global basis. The resilience of the market, fuelled by long term contracts, is attractive to international investors so we expect to see continued activity in this space over the second half of the year.”   

To learn more visit https://www.grantthornton.co.uk/