Finance Wales supports over 130 companies through succession
Fourteen companies have been supported through succession deals
by Finance Wales since April 2016, bringing the total number of
deals of this type completed by the company to 136. Investments for
the 136 deals total £43.8 million.
From BIMBOs (buy in management buyouts) to MBOs (management
buyouts), a range of different deals have been facilitated by the
investment company. Finance Wales launched its Wales Management
Succession Fund in April 2016, but can also facilitate deals
through other funds.
With an ageing business owner population the topic of succession
has become ever more important. Finance Wales works with advisers
and sector specialists advocating the benefits of creating a
detailed succession plan.
“Developing the second tier of management and having a properly
prepared succession plan increases options for owners and
ultimately will help deliver them maximum value,” explained Finance
Wales’ New Investments Fund Manager Chris Griffiths. “My advice to
anyone considering retirement options would be to engage early with
trusted business advisers and allow plenty of time in order to
ensure a managed transition to managers. This can take up to three
years so it’s never too early to start planning.”
Recent deals include the MBI (management buy in) of Cole
Contractors. An MBI is where an external candidate or management
team acquires a business, replacing the existing management
The road maintenance company came up for sale when the
previous business owner Steve Nichol decided to retire. Having
tracked the business over a number of years, new owners Ian and
Stephen Vickers were presented with a timely opportunity to buy the
company; adding to their portfolio of businesses which includes
Diamond Discovery and Eurologo.
“Cole Contractors has successfully been providing quality road
maintenance services in south Wales for over 20 years. With a
stable client base, good pipeline and strong management team Cole
Contractors is a great business" explained the brothers.
“Ian and Stephen Vickers are experienced managers and their
desire to buy into the company was perfect timing, allowing the
previous owner to exit seamlessly whilst securing the future of
what is a very successful business,” added Investment Executive
Ruby Harcombe, who structured the deal on behalf of Finance
Wales Management Succession Fund
This year also saw the first deals from the Wales Management
Succession Fund. One of the first deals was an MBO for
communication company Glamorgan Telecom.
Managing director and majority shareholder Kelly Bolderson of
Glamorgan Telecom, together with members of the senior management
team, bought out founding director Neal Pughe’s stake to bring the
company under the full control of the current board.
The move enabled the company to refinance its existing debt,
complete a multi company MBO and saw Finance Wales take a 15%
equity stake in the group after providing the financial support
needed to complete the process.
Kelly added: "This really is the beginning of a new and exciting
journey for the business and we thank Finance Wales for their help
and support during this process. With a full buyout in place, the
management team has full control to guide Glamorgan Telecom into an
exciting new chapter. “
For more information on support Finance Wales can
give, visit www.financewales.co.uk
or call 0800 587 4140.