FRP team provide lender due diligence in a multi-million pound acquisition deal for IT solutions provider

Background

Sterling is a B2B IT solutions and support company based in the Midlands, supporting a range of businesses from SME’s to recognised brands across the UK. The IT solutions provider has been on a trajectory of growth, having acquired a handful of businesses since it was established in 2002.

Action

FRP’s Financial Advisory team, led by Director, Joanne Price and Partner, Chris Adlam were engaged to provide lender financial due diligence, ahead of Sterling’s acquisition of a smaller IT solutions provider in the SME market. The FRP team reviewed the historical and forecasted trading performance, net assets and cashflows, of both Sterling and the proposed target for the lender, providing further insight to the credit team and identifying any issues and key financial risks.

Outcome

Following our team’s review, Sterling received the additional funds required to carry out its third acquisition, strengthening its offering, with a pooling of skills, services and resources, providing customers with 24-7 engineering support. The lend also included a second tranche to support growth working capital and a third tranche for a potential fourth acquisition.