FEATURE
Trusted - Azets ’ Teesside corporate finance team , from left , Steve Plaskitt , corporate finance partner , Mike Williams , associate director , Andrew Moorby , regional managing partner , and Lee Humble , corporate finance partner .
TAKE ADVICE BEFORE SELLING UP
Business owners on Teesside considering a sale or exit are being encouraged to seek advice sooner rather than later
Here Steve Plaskitt , corporate finance partner at Azets , explains more …
Deciding when to sell your business or raise investment can be very difficult – particularly in the current environment where business owners face so many headwinds .
For many businesses on Teesside , the pandemic presented opportunities to trade at or above normal levels and demonstrate a strong , resilient business model . However , over the last few months , multiple external factors have begun to impact transactional appetite . Not only did global conflict arise but inflation became front-page news , with continuing supply chain factors and interest rate rises combining , among other factors , to spark fears of recession .
As a result , we ’ re seeing an increase in businesses getting in touch to understand the best course of action for their circumstances . We ’ re encouraging business owners to seek professional advice if a sale or exit is being contemplated to ensure they are making the best financial decision for their business .
Despite the challenging economic environment , there are buyers out there , both trade and private equity , which is as diverse and sophisticated as it ’ s ever been . If a sale or exit is being contemplated in the next two or three years , then 2023 could well be the time to consider accelerating those plans .
The sale of a business – from a standing start – typically takes between six and 12 months . However , if a business is well organised and desirable , and potential buyers are readily identifiable , it is possible to accelerate timeframes .
There are other less conventional exit routes for shareholders that offer attractive tax savings , including employee ownership trusts ( EOT ). Azets has worked closely with a number of businesses in the region in selling or exiting their businesses and is well placed to provide advice across the full range of key areas , such as taxation , independent valuations , funding options and practical transactional support . We provide trusted independent advice and a straightforward , personal approach .
To find out more please contact steve . plaskitt @ azets . co . uk or visit azets . co . uk
Case study - M Group Services and Salient Systems
M
Group Services has acquired the trade and assets of Salient Systems , including its proprietary software , people and client contracts , to add further capabilities to its data management offering .
Founded in 2001 and based in Newcastle , Salient Systems is a specialist provider of technology solutions to the UK utilities metering market .
M Group Services is a leading essential infrastructure services provider operating within water , energy , transport and telecommunication sectors across the UK and Ireland . It has a turnover of £ 1.7bn and employs more than 10,000 people .
The acquisition will enhance M Group Services ’ offering for the market-wide half-hourly programme being implemented from 2024 , enabling the business to monitor energy usage half hourly through a cloud-based solution , as the industry transitions towards net zero .
Azets corporate finance and corporate tax teams advised the Salient management team to progress the deal and agree a deal structure that worked for both the buyer and Azets ’ client , the seller .
Les Edgar , director at Salient , said : “ We ' ve worked successfully with Callisto , part of M Group Services ’ Energy Division , for several years and are excited for our next chapter with them . I ’ m sure the business will go from strength to strength .
“ We have received excellent support from the teams at Azets who have helped us navigate and negotiate the deal . I appreciate the dedication of the teams in managing the process throughout and securing a successful transaction .”
Steve Plaskitt , corporate finance partner at Azets , said : “ It has been a pleasure to work closely with the team at Salient , and with Matt Collen and Jonathan Tutu at Sintons , to complete the deal , as well as the team at M Group , who have been extremely professional throughout . We wish the team all the best in their next exciting chapter with M Group Services and Callisto .”
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