Steel Partitioning Manufacturer – West Midlands
When John Knight took a call from David Jones of Howle Manor Holdings to say they were enquiring after a smaller business that was also for sale, he was intrigued. David explained that they were looking to diversify from agriculture into manufacturing and distribution and their strategy was to acquire 3 or 4 small businesses of around half a million in value.
John persuaded them it would be much cheaper in terms of professional fees and management time, to acquire one bigger target, namely Baxcrest, which was turning over around £2.8m and was very profitable, with a high NAV and a very capable management team in place.
In addition, the business had many of the other attributes that attract buyers, such as a broad spread of clients with mainly repeat business with good cashflow. Baxcrest attracted 4 offers, the difference between the highest and lowest offer being £250,000.
Howle Manor Holding’s offer was not the highest but, their family business ethic and financial stability swung the deal in their favour and 100% of the share capital in Baxcrest Ltd was acquired for a seven-figure sum.
David Jones of Howle Manor Holdings, said: “It has taken a while but we got there eventually so thank you for all your help. I remember our first conversation and you telling me about Baxcrest, it seems like a long time ago now but without that conversation it would have never happened.”