DEALMAKERS
IN ASSOCIATION WITH:
BUILDING MOMENTUM
THE BIG DEAL
The expansion journey continues for Inspired Energy. Acquisitions have played a key role in the group’s development into a national market-leading consultancy.
That buy-to-build strategy shows no signs of running out of energy, with the bolt-on deal it completed in March showing its continued appetite for acquisitions.
The Kirkham-based AIM-listed firm bought Businesswise Solutions and General Energy Management (GEM) in a deal funded from its successful £31.3m placing and open offer completed last July.
Nelson-headquartered Businesswise is an energy consultant which provides assurance optimisation to corporate customers in a broad range of sectors. It currently works with around 340 customers and holds an order book of around £10m.
Inspired has paid an initial £6m, which could rise to as much as £23.5m if Businesswise can hit financial targets.
Mark Dickinson
An initial £1.5m has been paid to shareholders for that business, with deferred consideration of £250,000 payable at the end of this year. A further £250,000 will be considered if GEM also achieves growth.
Inspired’s chief executive Mark Dickinson describes the latest additions to the group as
GEM provides energy assurance services to corporate customers in a range of sectors, with a strong presence in food manufacturing and distribution. It recorded a £250,000 pre-tax profit in the year to March 31, 2020.
“highly complementary”, which is vital to its buy- to-build approach.
He says: “Both acquisitions increase our market share for energy assurance services, broaden our customer base and significantly increase our units of opportunity.”
Inspired Energy is not alone in taking this route to growth. The number of private equity buy-to- build transactions in the North of England rose by 30 per cent during 2020.
Research by Rickitt Mitchell, the corporate finance boutique, in partnership with Experian Market iQ, revealed that a total of 63 bolt-on transactions were completed involving Northern businesses in 2020 – up from the 48 in the previous year.
The North West was the North’s most active region, with a total of 30 transactions in 2020 – third behind London and the South East nationally.
Kaine Smith, director at Rickitt Michell, says: “Private equity houses are looking to bolster their existing portfolio companies via bolt-ons, doubling down on their existing understanding and success in certain sectors, particularly in those such as SaaS and ed-tech where acquisitions are often easy to integrate.
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