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April 2008
Engineering consultancy in multi million pound MBO
Deal originated, funded and completed within the East Midlands
Tenon Corporate Finance has advised the management team on a multi-million pound buyout of BWB Consulting Limited, which was backed by Yorkshire Bank and Catapult Venture Managers Limited.
The deal provides an exit for founder and majority shareholder Malcolm Wright and gives control of the business to a four-strong senior management team comprising Steve Wooler (who takes over as managing director), Colin Langford, Tim Loveridge and Greg Nicholson. The opportunity to become owners of the business was extended to a further eight members of the operational team who invested for a significant minority interest. Yorkshire Bank provided bespoke senior debt and working capital funding alongside Catapult’s equity investment.
BWB, which is based in Nottingham and has offices in Birmingham, Derby, Leeds, Leicester and Manchester, employs around 250 people and provides multi-disciplinary engineering solutions to the property, development and construction industry.
Core areas include civil and structural engineering, geotechnical and environmental consultancy, flood risk and drainage engineering, traffic and transportation and highways and infrastructure consultancy. It also offers a range of additional services including regeneration and project management.
The business was founded in Nottingham in 1990 by Malcolm Wright, Chris Boon and Cliff Blunt. Over recent years, Malcolm Wright and the MBO Team have established the company as a consultant of choice for a number of key clients in the East Midlands, later expanding into other areas. Fee income has grown by over 20 per cent year on year since inception and is now around £17 million.
BWB’s clients include construction company Wilson Bowden, retailer Ikea, national student accommodation provider Unite and leisure operator Luminar and the company has worked on many flagship projects including Trinity Square in Nottingham, The Fort development in Birmingham, and Harlow town centre redevelopment.
The Tenon Corporate Finance team advising the management team was led by Neil Gray, Corporate Finance Director and Graeme Gladstone. Neil commented: “BWB have been a client of Tenon for some time now and it was great to advise such a well rounded managed team with a clear strategy. We instigated the transaction and brought together all of the parties involved. The deal shows our expertise in successfully transacting VC-backed buyouts and will give the new owners all the incentive they need to push BWB forward towards further sustained success.”
Yorkshire Bank’s Specialist & Acquisition Finance team was led by Sue Varley, director in Nottingham and included associate director Meg Thomson. Sue Varley said: “BWB has a proven reputation for its work on major development and regeneration projects, many of which are of real importance to the communities in which they are undertaken. Despite the reported uncertainty around general construction activity levels over forthcoming months, we believe that there will be strong successes too and BWB are well positioned to support both ongoing projects and also as a innovators to get new projects off the ground.
“The management team are passionate about the business and confident that their blend of specialist services will continue to drive the group’s standing in the wider consultancy market. This deal provides them the autonomy to pursue opportunities for further growth while allowing the retirement of the founder Malcolm Wright who has worked hard to build the business to its current size and status.”
The deal was completed on behalf of Catapult Venture Managers by Investment Director Graham Mold and Michael Quinn. Legal advice to Catapult was provided by Tom Gray, Associate with Berryman in Nottingham.
Graham Mold commented: “It is great to be involved in a deal in which so much of the East Midlands corporate finance community has been involved, especially given the short timetable against which everyone had to work together and deliver. Also very pleasing was the fact that this deal goes a long way to prove that this level of equity funding can be obtained outside London.
“This was a very significant investment for us, with the money coming from the Catapult Growth Fund, which was launched in January last year. BWB Consulting is a great business with a strong management team. The sector within which it operates has seen considerable consolidation in recent times, so it is refreshing to help an ambitious team looking to grow the business further rather than look to trade.”
Freeth Cartwright advised the management team on the buy out and Corporate Finance Partner Philip Raven commented "A transaction of this nature always has its complexities, but it undoubtedly makes a very significant difference when you work with fellow professionals within the East Midlands who you know and trust. Issues are resolved more quickly and that delivers real value to all concerned."
-ENDS-
For further information contact:
Sam Dabbs - Dabbs PR & Marketing - Tel. 07711 672893
Julia Reid - Tenon - Tel: 07800 617388
Stuart Neill - Yorkshire Bank - Tel. 07767 788 765
Notes to Editors
About Tenon
Tenon is a leading provider of accounting and business advice to entrepreneurs, providing clients with expertise in Business Services, Tax, Financial Services, Corporate Finance, Recovery, Outsourcing and Forensic Accountancy. Tenon is the 9th largest UK accountancy firm with over 1700 staff UK wide. Operating through a network of 40 offices, Tenon is able to offer local expertise but with the backing of a national plc.
Yorkshire Bank
Yorkshire Bank was founded in 1859 in Halifax, West Yorkshire. Today, the Bank has more than 190 branches, a strong personal customer base and a growing business capability in the North of England and the Midlands.
Yorkshire Bank is a trading name of Clydesdale Bank plc, which is a subsidiary of the National Australia Bank Group of companies. Yorkshire Bank joined the Group in 1990.
In 2006, Yorkshire Bank was voted the UK’s ‘Best Business Bank’ by the Forum of Private Business.
Yorkshire Bank Specialist & Acquisition Finance services:
• Senior Acquisition Debt - Senior Term Debt, Stretched Senior Debt and Property Term Debt
• Working Capital - Confidential Invoice Finance, Demand or Committed Overdraft and Specialist Trade and Project Finance
• Specialist Asset Finance - where applicable HP and leasing facilities are available to fund the acquisition and refinance of assets as part of a wider transaction
• Project Finance - allowing a deal to be structured from a long-term perspective, and tailored to match resulting project cashflows
• Mezzanine Finance - available to provide even higher levels of support to proven management teams and business models.
Catapult Venture Managers
Catapult Venture Managers Ltd is a leading private equity fund manager with one of the largest investment teams in the Midlands operating from offices in Birmingham and Leicester. With 80m in Funds under its management Catapult seek equity investment opportunities from £200k to £2m for growing businesses. Contact details for Catapult are 0870 116 3000 (Birmingham), 0870 116 1600 (Leicester) or catapult@catapult-vm.co.uk. Catapult Venture Managers Ltd is Authorised and Regulated by the Financial Services Authority.
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