Corporate Finance

Well-managed sale maximises shareholder returns

Safety security specialist is sold to leading European player

Background

FRP was appointed by the shareholders of a market leading designer, seller, installer and maintainer of fire alarms and security systems, to sell their business and realise their investment. Incorporated in 2003, the company benefitted from longstanding trading relationships and high levels of recurring annual maintenance revenues.

Since 2013, the business had focused on growing its high margin core customer maintenance base, and the small works and call out revenues that came off the back of these contracts. The strategy reaped significant rewards, with turnover growing from £1.5 million to £2.4 million. The business had approximately 140 service customers across more than 400 sites, and 1,150 annual maintenance contracts.

Action

Through a well-managed sales process underpinned by our in-house research function, FRP approached all the key acquisitive businesses – both domestically and internationally – in the fire and security market. Our approach ensured we were able to generate significant competitive tension throughout the sales process, maximising the return to the shareholders.

Outcome

The company was sold to a leading European player in the safety-security market for £3.4 million. The buyer is a well-established major independent security company in Europe, with more than 1,500 employees and a turnover in excess of €150 million.

The acquisition further enhanced the company’s presence in the UK, especially in the north west, and provided significant cross-selling opportunities to the wider group.

We generated competitive tension throughout the sales process Adrian Gare Corporate Finance

Related team

Adrian Gare

Adrian Gare

  • Partner
  • Corporate Finance
  • Manchester