It becomes the latest Lancashire company to be bought by an overseas business in recent times.
The county saw a raft of multi-million pound deals in 2024, with businesses across a range of sectors proving tempting targets for growth hungry overseas buyers.
Skelmersdale based family business Yew Tree Dairy, another former Hot 100 company, was targeted by major milk processor Müller, headquartered in Bavaria.
Blackburn based tissue manufacture Accrol was acquired by Navigator Paper in a £130m deal. Navigator is part of a large Portuguese integrated pulp, paper, tissue, packaging and biomass-based energy company.
Star Tissue, one of the UK’s leading independent makers of hygiene paper products, also based in Blackburn, was sold to German-headquartered hygiene group WEPA Professional, a family run business with a turnover of more than £1bn.
Accrington based managed transport specialist CMAC Group was bought by one of the world’s largest land transport companies, Singapore headquartered ComfortDelGro Corporation, in an £80m-plus deal.
And 2024 came to a close with the fulfilment specialist Staci, which has four locations in
Expert View MAKING
TEAMWORK COUNT By David Filmer, partner and head of corporate, Forbes
When seeking private equity investment, it’s crucial to understand that investors are investing in a team of people as much as the business itself.
Private Equity (PE) firms look for a combination of strong leadership, expertise, and growth potential. Building the right team is vital to securing the necessary funding and ensuring long-term success.
This involves creating a network of trusted advisers, assembling a solid corporate finance team, ensuring legal expertise and having an effective management structure.
Fundamentally, PE investors seek the opportunity to invest in a vision. The vision must be ambitious and profitable, but simultaneously it should not be unrealistic and pose significant risk to the investor, which ultimately stems from the leadership of the business.
Private Equity firms seek businesses with experienced leadership teams. A strong management team with a proven track record in the business’ respective industry is vital. Investors want to know that the team can execute the growth strategy and navigate challenges.
Strong leadership keeps the business’ vision aligned from the boardroom to the
staff and reassures investors that your business can scale effectively.
Collating a strong network of advisers is intrinsic to attracting PE investment. PE investors seek comfort in investing in a team equipped with experienced financial and business advisers, who can offer expert insights and ensure the business is positioned for growth.
They can also facilitate relationships with PE investors, cultivating credibility and trust with potential investors.
A business’ corporate finance team attracts PE by creating accurate financial models, valuations and due diligence documentation that align with investor expectations, boosting funding chances.
A strong legal team ensures regulatory compliance, and risk mitigation, providing confidence to investors that any future deals are handled efficiently and can accelerate the success of the business.
Ultimately, attracting PE requires more than an attractive business model, it’s about assembling a team worth investing in. A strong network of advisers, a capable finance and legal team, and a skilled management group are key to gaining the confidence of investors.
Blackburn, being acquired by the Belgian multinational postal operator bpostgroup in a deal worth a massive £1.3bn.
Those deals have come about despite the uncertainty surrounding the UK economy.
However, Stephen Robinson, corporate finance director at Blackburn headquartered accountants and business advisors PM+M, believes the Bank of England’s decision in early February to cut its interest rate may now have a positive impact on the M&A market.
He says: “The decision to reduce the base rate from 4.75 per cent to 4.5 per cent could positively influence businesses looking to expand or exit through M&A.
“For buyers, lower borrowing costs may increase affordability of funding, meaning increased access to financing and potentially boosting purchasing power in M&A transactions.
“Whilst for sellers, reduced rates may encourage buyer interest, leading to increased competition and potentially higher valuations.
“Sellers should remain mindful of possible future rate changes that could affect buyer sentiment. Overall, this rate cut could signal improved funding conditions, offering potential advantages for both buyers and sellers.”
Andrew Hancock Business development and research manager Corporate Finance
BOOST VALUE THROUGH PLANNING
AND PREPARATION An A-Level teacher of mine said: ‘Proper preparation and planning prevents poor performance’.
In the world of business ownership, proper consideration around a solid succession plan for businesses is often overlooked but it can have a huge impact on the value achieved.
Here are three reasons why a well-planned succession plan can ensure value is created in a potential sale process:
1. Higher Valuation
• Advance preparation allows you to optimise financials, reduce costs, and show strong profitability trends, which increases valuation
• Well-organised records give buyers confidence in the accuracy of reported earnings
2. Stronger Negotiation Position
• With a solid exit strategy, you control the structure of the deal rather than being forced into unfavourable terms
• A competitive bidding environment can be created when multiple buyers are interested, increasing value
3. Smoother Due Diligence Process
• Proper planning ensures there are no surprises that will be uncovered during due diligence that could reduce the price or kill the deal entirely
• Well-documented customer contracts, supplier agreements and employment records create confidence in business continuity post-sale
So taking the time to develop a clear succession plan enables you to ensure your business remains strong, leading to a smoother, cleaner transaction.
For further information: 0161 850 2632
info@groupams.co.uk www.groupams.co.uk
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