CORPORATE FINANCE
Ollie Newbold | Partner
What makes a successful acquisition? During the acquisition process, there are crucial ‘pinch points’ that, if managed poorly, can be detrimental to the deal’s success. We look at how to make sure it all goes to plan. We pride ourselves on our cohesive deal management, which involves working collaboratively and effectively with all parties. Following a full acquisition process and subsequent deal supervision, Cotswold Tool and Plant Hire Limited was successfully sold to WHC Hire Services Limited (WHC) on 28 February 2017. WHC is a highly successful, innovative and forwardthinking plant and tool hire company with depots in Gloucestershire and Worcestershire. Customers range from blue-chip companies to small family businesses and individual DIYers. The business thrives on its enviable reputation for the outstanding quality of their equipment. After having set out a clear strategic plan, WHC have recently invested £1.5 million in acquiring Cotswold Tool and Plant Hire in Chipping Norton, Oxfordshire. This complementary addition to their existing premises in Worcester and Tewkesbury has enabled Managing Director James Clutterbuck to increase the customer base and commit to securing the future growth and geographical presence of the company. WHC had worked with Will Abbott (Head of Business Advisory at Randall & Payne) in July 2014 to develop its strategic plan. Reflecting on the delivery of the plan, James said “This acquisition demonstrates
10
– Summer 2017
James Clutterbuck Managing Director, WHC
Having the knowledge and professionalism of Randall & Payne at the very beginning of the negotiations was imperative the importance of setting out a clear strategic plan. To achieve our goals ahead of time is fantastic! We’re now looking forward to setting our next three-year plan.” Having already identified Cotswold Tool and Plant Hire as an acquisition opportunity, James and Laura, WHC’s Accounts Manager, approached Ollie Newbold (Head of Corporate Finance) in October 2016. Randall & Payne were engaged to deliver the acquisition from start to finish, including
initial negotiations, due diligence, financing and deal management. With access to a multitude of finance providers owing to long-standing relationships, including major banks as well as independent finance houses, Randall & Payne secured the finance that put James in a position to move forward confidently with the transaction. Of the acquisition process, James said “Having the knowledge and professionalism of Randall & Payne at the very beginning of the negotiations was imperative to WHC. Ollie took control engaging with all of the legal, financial and accountancy aspects on our behalf. We had 110% commitment from him and his team and all questions were dealt with immediately and efficiently, even outside of working hours. Randall & Payne have a brilliant, forward-thinking approach that suits the WHC ethos. Once the new depot is fully transformed into the WHC brand, I’m sure we will be calling upon their expertise once again for depot number four.” Having visited the new site post acquisition, we were thrilled to see that, as a result of WHC’s careful planning, the integration had performed better than expected and compatibility with WHC’s existing trade was second to none.