RG Corporate Finance and Optima Corporate Finance have advised on the successful Buy Out of East Midlands’ recruitment specialist, Impact Recruitment Ltd.
Founding director Paul Hooper has become the sole shareholder of the company after acquiring his fellow founding partner Neil Kitchener’s shareholding in the business.
Impact Recruitment Ltd was founded in 2002 by Paul and Neil along with Nigel Buller. The entrepreneurial trio forged a strong position in the region’s recruitment market building an agile and successful business, which operates from four locations across the East Midlands and serves a client base of around 150 employers.
After the firm’s initial growth, Nigel subsequently sold his shares in the business to Paul and Neil, but has remained with the company as an employee helping to deliver its range of services.
The company, which has offices in Northampton and Wellingborough, specialises in placing temporary and permanent talent with employers operating in industrial and commercial sectors, including engineering and technical positions.
Following the buyout, the business aims to continue on its growth trajectory in its core East Midlands area, developing opportunities in new and existing markets.
Having led Impact Recruitment as Operations Director for a number of years, Paul will assume overall responsibility for the future development of the company as Neil exits to pursue other opportunities.
Funding for the multi-million-pound buyout was provided by Allied Irish Bank (GB). Following the buyout, Impact Recruitment has also selected Allied Irish Bank (GB) to provide day to day banking facilities to the business, along with a working capital line.
Advising Paul on the share buyout was Newcastle-based RG Corporate Finance with a team led by Corporate Finance Senior Manager, Alex Simpson, and Head of Corporate Finance and Partner, Carl Swansbury. Legal advice to Paul was provided by Ian Brent and Diana Mennie from Fladgate LLP. Tax advice to Paul was provided by Simon Whiteside and Charlie Burton of RG Business Tax.
Neil was advised by Philip Ellis of Optima Corporate Finance with legal advice from Steven Raize and Katherine Hornsby from Gateley Plc.
Funding support was provided by Business Growth Manager, Martin Rankin and Senior Relationship Manager, Chris Dixon from Allied Irish Bank. Ward Hadaway provided legal advice to AIB.
Paul Hooper said: “Neil, Nigel and I have built a successful business, which I am keen to continue to develop by increasing our position in our key markets. We have a talented team, with great experience and knowledge who will be instrumental in our future growth as we develop our relationships with new and existing clients, whilst strengthening our portfolio of candidates. I wish Neil well for the future and thank him for the part he’s played in establishing and growing Impact Recruitment.”
Neil Kitchener said: “After successfully executing our three-year strategy exceeding all goals, most notably increasing sales from £8m to £13m, I feel that I am exiting with the business in its strongest ever position. I am delighted that Paul has been able to acquire a 100% shareholding in Impact and I am certain that he will successfully take the business to the next level.”
Alex Simpson, Corporate Finance Senior Manager at RG Corporate Finance, said: “RG Corporate Finance is very active in advising businesses in the human capital sector and we have been impressed with Impact Recruitment’s approach to business and its structure, which Paul has been instrumental in creating. Impact Recruitment is highly-regarded in industrial and commercial staffing markets. This buyout delivers continuity, securing the future of the business, and confidence among its client base that they will continue to receive the high-levels of service they have come to expect. We look forward to working with Paul and the team at Impact Recruitment for many years to come.”
Philip Ellis of Optima Corporate Finance said: “Neil has played a crucial role in developing Impact and now wishes to devote his time to other pursuits. We are delighted to have helped him achieve this ambition and realise the value he has helped to create.”