Ryecroft Glenton Corporate Finance (RGCF) has advised on three completed transactions in as many weeks, the most recent being the completion of Solingen Private Equity’s investment into Leeds based, Academic Appointments.
The Newcastle-based firm advised private equity house Solingen on its investment into Academic Appointments, while also carrying out financial due diligence on the business, which provides qualified teachers and teaching assistants to schools across the North of England on a temporary, contract and permanent basis.
Founder and now Executive Chair, Mo Parkin, will retain an equity stake in the company. Pete Riley, managing director, will continue to lead its growth, which will be supported by this new investment. With offices in Leeds and Doncaster, the company predominately serves the Yorkshire and North West education sector.
Paul Betts, director at Leeds-based Solingen, said: “We look forward to partnering with Pete and his team at Academic Appointments to support their growth plans. This is exactly the type of successful, local business where we believe Solingen can add value by providing equity growth finance and strategic support to management.”
This transaction completes a trio of transactions advised on by RGCF in recent weeks, including the Management Buyout (MBO) of IT services business, DP Connect and the sale of a controlling equity stake in Newcastle-based tenant referencing business, Van Mildert to London-based private equity house Aldington Capital.
RGCF advised DP Connect’s managing director, Aidan Anglin, on the MBO, which saw the business acquired from its founder. As a result of the MBO, which was delivered through funding from Yorkshire Bank (North East), Aidan and his team aim to build on the company’s achievements to deliver further growth.
Private equity investment from Aldington Capital is also supporting the continued growth of Van Mildert, one of the UK’s fastest growing tenant referencing providers, as it will enable the business to scale its current operations, whilst developing its current service offering.
As is the case with Academic Appointments, the sales director of Van Mildert, Christian Balshen is remaining with the business and retains a substantial stake in the company.
Carl Swansbury, partner at Ryecroft Glenton Corporate Finance, said: “It is a noteworthy achievement for a corporate finance division of our size to complete three significant transactions is as many weeks.
“These transactions represent our diverse client base and the broad range of sectors we advise clients in, whilst demonstrating our capabilities to advise a range of different stakeholders on transactions, including vendors, purchasers, private equity investors and incumbent management teams in the successful delivery of transactions.”
Carl added: “This trio of transactions is also a good indication of the current Mergers and Acquisitions market. While this time last year the market was seeing businesses being sold to trade buyers looking to scale up their operations or expand their geographies, the notable difference in 2017 is the prevalence of mid-market private equity houses looking to invest in, or acquire, growing SMEs.
“It is an interesting time for shareholders of SMEs who may be considering private equity investment to grow their companies or providing a way of de-risking by realising a capital sum on sale of a shareholding in their business. With so many mid-market private equity firms looking for successful, profitable companies, with strong management teams that can continue to lead the business, following the completion of any transaction, there is an opportunity to secure a strong multiple when valuing such businesses.”
Mark Stewart from Aldington Capital said: “We are currently exploring markets to identify successful and growing SMEs that can not only benefit from private equity investment, but also from the expertise and external knowledge we can bring to these companies. Working with advisors such as Ryecroft Glenton Corporate Finance can help both SMEs and private equity houses deliver a transaction that is beneficial to both parties and can be a springboard to future sustained growth.”