Independent Factoring Business For Sale (ref. P6952)
Pace Equity has been retained to act on behalf of a £2m revenue factoring business providing a personalised and professional service.Exceptional debt recovery track record from long term customer base of small and mid-sized businesses across a range of industries. Growth achieved through reputation and referral with debtor book currently standing at £15m+, consistently highly profitable.
For further information, please email us at info@paceequity.com or contact Ken Graham at Pace Equity on 01491 577889.
Recycling Business For Sale (ref. P6928)
Pace Equity has been retained to act on behalf of a £6m turnover Consumer/Small Electronics Recycling Business. Following 70% plus growth in current year plus development of appropriate infrastructure the business has potential for significant expansion.The founders of the business believe that ownership by a larger parent would give it the resources to take advantage of the range of opportunities it is currently pursuing.
For further information, please email us at info@paceequity.com or contact James Robertson at Pace Equity on 01491 577889.
Acquisition Focus
Pace Equity is pleased to announce that the Winter 2009 edition of our M&A publication for mid-market private companies "Acquisition Focus" has been released.In this edition, we focus on Exit Strategies for the Upturn with articles on company valuations, fundraising & business planning. Also included is a brief review of the current climate and our take on the recession and the fundamental implications for business.
The latest edition of Acquisition Focus also contains a selection of the Pace Equity M&A portfolio of businesses for sale and acquisitions sought by our growth orientated client companies.
If you would like to be added to our mailing list to receive a hard copy of Acquisition Focus, please e-mail your address to info@paceequity.com Alternatively, please feel free to browse the content of the publication on the website at www.acquisitionfocus.com.
Pace Equity Expands Team
Pace Equity is delighted to announce that Graham Chisnall has joined our team of strategic M&A advisors. Graham brings with him a wealth of experience and will be focusing on the Industrial sectors, taking on responsibility for all Aerospace & Defence opportunities. For all related enquiries, please contact Graham on 01491 577889 or at grahamchisnall@paceequity.com.Graham is a former Group Strategy Director for both BAESystems and GKN. A Chartered Engineer and Fellow of the Royal Aeronautical Society he was involved in a number of complex aircraft programmes including positions as Technical Director and Chief Engineer on all key BAES aircraft. As Group Head of Strategy at BAES, Graham was responsible for developing the Group Strategic Plan over the period 1998 to 2000 which also involved significant mergers and acquisition responsibilities during this period.
In July 2000, Graham moved to GKN, to the newly formed Aerospace Group, as Director – Group Operations Engineering, responsible for Engineering, Technology development and Strategy. In 2004, he took the new position of Corporate Director – Strategy, responsible for Group strategy across all sectors of the company, including Group level mergers and acquisitions; whilst retaining over-sight of Group technology.
Deal Completion
MBO of Budelpack March (in administration) Ltd by March Foods LtdIn late December 2008 Pace Equity was introduced to the management of Budelpack March Ltd the UK based subsidiary of Budelpack International BV, a Dutch contract manufacturing and packing group. The management team had recently effected a turnaround in the performance of Budelpack March but were concerned about the future viability of the parent company. The management team asked us to review their options with regard to a potential MBO either from the parent company or an administrator, if the parent company was forced into administration. In such circumstances the UK subsidiary would also be subject to an administration order as the parent ran a central treasury system.
By mid January it became obvious the administration route was the only outcome and therefore we considered the funding options available to the management team which included Asset Based Lending, Invoice Discounting, Cashflow Lending and an Equity Investment. With the timescale constraints and the market conditions attached to asset finance, it was concluded that an equity investment was the preferred option. We introduced a private investor who bought into the sector and the management’s medium term plan for the company.
There was significant interest in the opportunity when an Administrator was appointed at Budelpack March in February. After a competitive process, the management team, via March Foods Ltd, completed the deal with the backing of the private investor. None of the 140 jobs were lost and all the customers were retained and are very supportive of the management going forward. March Foods is well funded with a clear vision for its future development.
Paul Cope, the Managing Director of March Foods, said “Without Pace Equity’s involvement I am extremely doubtful that we would have been able to find such an elegant solution to our funding challenge in the time available and the uniquely difficult financial market conditions. All at March Foods are very appreciative of the support provided by Pace Equity.”
Lending and Funding for UK Businesses
Pace Equity is actively working on fund raising for a range of MBOs and company funding rounds in the following sectors: Food Packaging, National Domestic Services, Technology and Robotics, Logistics Software, B2B Data Management, Financial Services Software, Office Equipment and Facilities Management.
The doom and gloom press seem focused on the “lack of lending” in the current UK market. What they seem to have forgotten is that business is about survival, growth and prosperity and that banks are also businesses, as are most other sources of lending and funding for UK business.
To say that raising funds for business in the current climate is easy would be naive in the extreme, but the fact is that banks and other funding institutions have to do business to survive. The trick is in thorough preparation of the case and in the innovation in the solutions.
At Pace Equity we are working actively with a wide range of funding sources - local banks, foreign banks, asset lenders, invoice discounters, mezzanine debt providers, private equity firms, business angels and private family funds to find solutions for business funding. And we are enjoying high levels of success. Do not believe the main stream press - funds are available for businesses, but the rules have changed and you need to adjust to meet the new order.
Appetite for Acquisitions
Ambitious companies may well consider that current conditions represent an opportunity to build real shareholder value through acquisition. In the recent past with vendor expectations at a high, it was difficult for many potential acquirers to get out of the starting blocks with their acquisition programmes.
Whilst strong businesses continue to command decent valuations, there is more chance of vendor and acquirer price expectations reaching some form of alignment.
We have seen enquiries increase from savvy business owners and managers looking to strengthen their businesses and ensure that they are well placed to not only ride out the current conditions, but to grow and prosper.
At Pace Equity we can provide assistance with the process, from researching and approaching target companies to valuation, negotiation and project management of the whole process.
In the last few months Pace has been in contact with a number of acquisitive companies. New areas of particular interest include:
Manufacturing / Engineering, Housebuilding, Fire & Security, Software Develpment & ITC, Personal Care, Printed Circuit Boards, Food Ingredients & Petfood Manufacture
In addition, we have received an influx of enquiries from businesses and individuals over the last few months, who are keen to take on businesses struggling under current market conditions.
To discuss any aspect of Mergers and Acquisitions, please contact Joel Penrose on 01491 577889 or at joelpenrose@paceequity.com.
> Please contact us for further information