Background

Climatec Windows, based in Southend-on-Sea in Essex, is a leading manufacturer of UPVC windows and doors for trade and commercial buyers, with customers across East Anglia and south-east England. The company was founded in 1993, and the existing owners were planning to sell the business to the incumbent management team; they needed advice regarding the tax implications, structure and funding for the deal.

Action

FRP’s Corporate Finance team was engaged to advise the owners on their negotiations with management, assisting them to achieve a fair price as well as securing the right funding mechanism. In addition, our team provided advice and then sought and received the relevant HMRC clearances to ensure that all tax matters were dealt with correctly, giving the owners the confidence to proceed with the transaction. We also introduced a range of funders to the business and advised on the different offers received, supporting the company through the credit application process.

Outcome

Under the successfully negotiated deal, the management team of seven senior managers took a controlling stake in the business and are now fully incentivised to benefit from exciting future growth opportunities. The founding shareholders have partially exited the business while maintaining minority equity stakes.

“Thank you for the professionalism shown throughout. The hard work and diligence of the team from the outset ensured that we concluded the process and got it over the line within our timescale.” Steve Barker, Managing Director of Climatec Group