The owner management secured the sale of two significant parts of an air conditioning installation; refrigeration installation and servicing and maintenance business with a turnover in excess of £50m. Upon initial instruction and assessment an external accountant partner (KPMG)was introduced who implemented a detailed cash management and forecasting programme with a view to selling the businesses as a whole to trade buyers which were introduced by us and/or known to management, having eliminated within days
the possibility of a turnaround.

Once trade buyer interest for the whole business was explored and, ultimately, was not an option, refinancing and further investment by the major stakeholders and trade buyer/MBO sales were explored in tandem with standstill agreements with major multi million pound creditors.

Cobbetts introduced a successful trade buyer for the servicing and maintenance business and an MBO team structured an offer supported by appropriate financing to acquire the refrigeration installation business.

The strategy which spanned a period of ten weeks preserved the goodwill of two of the three businesses; the employment of approximately 150 employees and significantly (in excess of £2 million) enhanced stakeholder value particularly for the debt lender and also served to reduce the liability of directors/shareholders/ stakeholders who had guaranteed the senior debt lenders position.

To discuss this case in more detail please contact zafar.rafiq@cobbetts.com