Gambit Corporate Finance has acted as lead advisor to the shareholders of Safety Net Services and MW Scaffolding on their sale to management.
The two businesses, under common control, were set up by John Walsh and Mark Hayes who each retain a residual shareholding.
Safety Net Services is a specialist provider of safety nets and equipment to the construction industry. Based in Aberystwyth, the company has operated UK wide since 1998 and worked on multiple large-scale projects including the Stratford City Shopping Centre, the Welsh Assembly Government building and the St David’s 2 Shopping Centre, Cardiff.
MW Scaffolding, also based in Aberystwyth, is a turnkey provider of scaffolding hire and erection services. The company has operated for over 30 years, serving clients within education, construction, utilities and public sectors.
Gambit provided advice on the valuation of both businesses, structuring and negotiating the terms of the buy-out, preparing the Head of Terms and co-ordinating the preparation of financial projections to support the deal structure adopted.
The Gambit deal team was led by Frank Holmes, Partner and Simon Marsden, Director.
Frank Holmes commented, “We are delighted to have acted for John and Mark in delivering a solution which enables them to realise shareholder value whilst also retaining an operational and financial interest in the businesses. It highlights the important role that MBO transactions play in effecting an orderly transition of ownership whilst preserving the economic viability and prosperity of these businesses which, whilst highly successful, may not wish to procure a trade buyer.”
Simon Marsden commented, “These transactions provide an excellent example of how the objectives of business owners and management teams can be aligned to deliver an effective and tax efficient succession plan. We are seeing an increasing number of high quality businesses with no succession plan in place and which, subject to appropriate advice and structuring, could benefit from favourable tax rates and funding available to facilitate this seamless transition of ownership.”
Accounting, due diligence support and tax advice to the vendors and the management team was provided by Llyr James Chartered Accountants in Carmarthen. Legal advice to the vendors was provided by Andrew Bound and Paul Evans from Berry Smith with the management team advised by JCP Solicitors.
