Case studies - Examples of Mergers and Acquisitions

We can provide relevant examples of mergers and acquisitions in each of the sectors we cover which will probably be of interest to potential clients. However, these will be subject to legal and commercial confidentiality and to the consent of the parties involved.

We give below examples of mergers and acquisitions of general interest which meet the above constraints and are in the public domain.

Sector: Manufacturing/Engineering (Sale Client)

Client: Our clients were the owners of a small manufacturer of kitchen doors – supplying a range of house builders in the Midlands. The company had declining sales and the owners did not have the funds to invest in the capital equipment and marketing necessary to develop and grow the company. The owner who worked in the business, however, needed a sale of the business in order to fund his retirement.

Our Role: Time was short; we decided to focus on identifying a buyer which could move our client's business directly into its own production facilities, so increasing turnover with very little increase of overheads. We put together a package which essentially consisted of the key employees, the key pieces of equipment and the customer list. This package was then offered to only those companies which qualified as potential buyers and which could act in the necessary time frame.

Outcome: Within two weeks we were in discussions and completed a deal within another four weeks. We needed to contact only six companies; this helped to preserve confidentiality and maintained the stability of the business during the selling and negotiating process.

Sector: Packaging/Point of Sale (Acquisition Client)

Client: A large diversified European public company, that had a leading position in the corrugated packaging supply chain throughout Europe, was also a substantial supplier of high-quality printed display material in the United Kingdom. The Group wished to extend its activities downstream towards the retail sector in order to secure its market for printed display material and also to benefit from higher margins in that sector.

Our Role: The target market was very fragmented and ranged from creative design companies to fairly basic printers. The task was to identify targets that were well positioned in the sector, had managers who could fit into a large corporate, and which were available to buy. We looked at over 100 companies and visited nearly 30. We were able to present five possible targets to our client. We initiated discussions with the prime target, which was owned by a private equity firm, and prepared valuations.

Outcome: The target, with sales of £11m and 137 employees, was purchased by our client, and has become the core for further expansion in this sector.

Sector: Scientific Instrumentation (Acquisition Client)

Client: Our client is a public company involved in the manufacture and supply of scientific instrumentation, particularly in the fields of photonics and biosafety.

Our role: Drawing up of acquisition criteria, identification of targets, approaches and initial negotiations. The products in which our client was interested were manufactured in USA, Japan and Europe. Using associates, we searched for opportunities in those areas.

Outcome: We identified and approached a leading supplier of optical sensing equipment in the USA, and persuaded its numerous shareholders (including management and private investors) to sell to our client.

Sector: Business Support Services (Acquisition Client)

Client: A leading professional services business wished to strengthen its Human Resources division by acquiring HR consulting firms in various regions across the United Kingdom.

Our Role: Drawing up of acquisition criteria, identification of targets, approaches and initial negotiations.

Outcome: We identified and opened negotiations with a suitable target company. This company, with billings of £2.5m and 33 consultants, was purchased by our client.