Trading places
For hirers looking to move on, or companies looking to acquire, there’s never been a better time to sell and buy a hire business. In a brisk Q&A format, we hear from both sides in a recent transaction.
How difficult (or easy) were the negotiations during the midst of the pandemic. How was this achieved and how often were you able to meet?
All negotiations were conducted via Teams and Zoom. Actually, I found this a good method, as meeting times and availability was much easier with no travel time to consider.
Lastly, What input does AER now have in the day-to-day running of the business, and what is your involvement going forward? Will this be your last venture in hire, or do you now have other plans?
Marc Prince, right, with Sales Director Mel Gould and a lady from the company's favoured charity.
Seller: Welfare 4 Hire CEO, Marc Prince
The Hire Exchange helped to broker the deal with AER Rents, but how did the company come into the mix – who contacted who? How long had the business been for sale?
The Hire Exchange introduced us to AER Rents. The business had been for sale for around three months at that point, and we had received interest from various parties
What was entailed in the business analysis and valuation undertaken in the production of the ‘Information Memorandum’ (IM) – the document produced to promote the sale of the business? What other support were you offered?
The IM documentation is actually fairly detailed. Fortunately, we run a very well organised and well documented business, but it still takes a considerable effort to compile this. The Hire Exchange were on hand to advise with any queries.
The legal and due diligence part of the process can easily become withdrawn and does take a willing buyer and seller to push things on. Again Hire Exchange were excellent advising throughout this period
I think IM docs and DD/Legal process will be difficult for some companies, and I have discussed with Hire Exchange the possibility of myself (having gone through the process) helping companies in future with this process.
Having now completed the transaction, was it to your overall satisfaction and do you think a realistic price was reached?
I’m very happy with overall service by Hire Exchange and, yes, a realistic price was achieved.
I am currently employed by AER during the handover period to existing management team, and this employment ends in mid-2022. I have enjoyed working in hire Industry for the last 17 years, so I’m likely to remain involved in the industry in some form. However, I have no definite plans at moment.
Buyer: AER Rents CEO, Gavin Pitt
What was about Welfare 4 Hire in particular that first brought the company to your attention?
AER were looking to add a specialist business to our rental portfolio to complete the core plant, tools and powered access offering provided by our other businesses. The supply of welfare is a booming sector and would have a significant crossover into our existing customer base. Welfare 4 Hire have a modern, well maintained fleet sourced from a single manufacturer.
AER Rents CEO, Gavin Pitt.
With over 30 years’ experience in the hire sector yourself, what insight, documentation and support did Hire Exchange offer, and how useful was it to you?
Team fit is very important in any acquisition – the vision and values of AER and Welfare 4 Hire are closely aligned and that was very important for us to protect the value in the purchase. As an acquirer, the IM is very important – The Hire Exchange produced a very detailed document that focussed in on the important areas of the transaction. This helped the deal progress smoothly from the outset. I felt the Hire Exchange brokered the deal well – knowing the right time to reset expectations with both parties to keep the deal momentum.
20 Executive Hire News - Nov/Dec 2021
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