Steven Bell Corporate finance director
/PierceCA @pcaltd /piercecaltd
SEP founder Simon Broadbent with Ronnie Coutts of The Clearway Group
and the Alchemist bar group. The deal saw it acquired by London headquartered Aureus Acquisitions – described as a boutique mergers and acquisitions firm - which focuses on acquiring SMEs in a range of sectors.
It will see vendor Darren Hall remain in the company in his new role as managing director, while shareholder Iain Moir plans to retire.
Iain said: “Having met with multiple interested parties we knew from our first contact with Aureus that they were very likely to be the favoured bidder.
“We are very proud of what we and the superb Kitchequip team have achieved in developing a tremendous platform for Aureus to build from.”
Darren added: “I am looking forward to taking over the reins from Iain, who made the company what it is today and wish him all the best for his well- deserved retirement.”
Chorley soap manufacturer Droyt Products is also looking to a future with new owners after The Appleton Group, which
Expert View
MAXIMISING YOUR FUNDING OPPORTUNITIES
By Jenny Burke, partner Forbes
Private Equity (PE) firms operate investment funds on behalf of institutional and accredited investors to buy shares in private companies.
They are looking to back promising companies with a solid management team and good prospects.
PE will usually work closely with the main stakeholders and bring in specialist expertise from within the sector.
PE not only assist on full exits, it can also assist your business with funding for growth, acquisitions, buy and build, cash extraction and retaining control - a breadth of services.
One major consideration is choosing the right PE firm for you and your business to achieve your strategic and financial goals, maximise the opportunities available
within your company and boost profitability. Some PE firms may have unique expertise in deal structures and industries based on the firm’s leadership and investors and their professional experiences.
It is important to identify industry- specific expertise, as the industry experience will be the buyer that can help grow the company.
An example is LDC, a leading private equity investor and part of Lloyds Banking Group. For more than 40 years, ambitious management teams across the UK have trusted LDC to help them to grow their business, their way.
LDC’s experience and relationship-based approach have helped more than 675 businesses to grow, in industries including business services, consumer, healthcare, ICT, industrials, media and technology.
LANCASHIREBUSINES SV
IEW.CO.UK
operates from Twickenham, acquired a majority shareholding.
It is now seeking new international markets for Droyt’s, which can trace its roots back to 1893 in Minsk, Belarus. The company to this day uses antique hand-operated machinery and family recipes dating back to 1907.
The company has been crafting glycerine soap products in Chorley since 1937 and today its ranges can be found in retailers from boutiques to supermarkets.
The acquisition by the Appleton Group brings it under the same umbrella as Chorley firm Kerax, which manufactures a range of wax products.
Ian Appleton said: “Our shared values of quality, innovation, and reverence for local heritage make this partnership a natural fit. We are eager to introduce this British glycerine soap to new markets worldwide.”
Alistair McCracken, director of Droyt’s, added: “We are excited about this partnership, which promises opportunities for both companies. It enables us to continue delivering our glycerine soaps while exploring new horizons.”
EOT SALE ROUTE OFFERS WINS TO ALL PARTIES
In the current uncertain economic environment we are seeing many clients considering how they can secure their financial legacy from their business.
As an alternative to a trade sale or a management buy out, we are seeing many owners looking towards the Employee Ownership Trust (EOT) model as a way of securing the continued independence of the business.
Introduced in the Finance Act 2014 the EOT provides a structure by which employees can collectively have a controlling interest in the business. The government has actively encouraged this business model by allowing vendors to sell with full Capital Gains Tax (CGT) relief on the sale proceeds.
The sale to an EOT provides greater certainty in respect of the transaction as the vendors control the major aspects of the transaction. There is no need to engage with third party buyers or funders which can be a distracting process.
Alongside the beneficial tax treatment for the vendors, the company can also offer tax efficient share schemes if there are any particular employees that are seen to be key to the development of the business, alongside paying tax free bonuses on an annual basis to eligible employees.
Whilst the sale to an EOT is not appropriate for every circumstance, the preferential tax treatment for vendors and employees means that we are seeing more clients actively engage in this process to see whether or not it is appropriate for them.
The Pierce corporate finance and tax team has extensive experience of guiding our clients through the maze of EOT and can provide guidance as to whether this route is appropriate for an individual vendor.
Call us on 01254 688100 or visit
pierce.co.uk
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