Jonathan Bell was eager to build a group of companies, having bought and sold many businesses over the years.
At the smaller end of the market, many business owners had chosen to sell through brokers, which introduced a level of inflexibility. Asking prices had already been set, and businesses were often without additional advisors to broker deals more efficiently.
In order to successfully negotiate the terms for company purchases, Jonathan also needed total confidence in his chosen funder’s ability to deliver the relevant facilities.
Jonathan and ABN AMRO Commercial Finance met to discuss his ambitions prior to any actions, and to map out what ACF would be interested in. Each business target was considered separately and on individual merits.
"In the market for funding small acquisitions, asset based lending is probably the first and only port of call,” Jonathan explains. “In my experience, traditional lending from the banks simply isn't available on sensible commercial terms.”
The funding solution agreed required a nominal equity injection, and company purchases have been done by way of sweating the assets (debtor funding only). In all, some £925k has been provided by way of confidential invoice discounting.
Existing management accepted deferred consideration terms, allowing the deals to be done.
"In the market for funding for funding small acquisitions, asset based lending is probably the first and only port of call"
Jonathan now has a group of three engineering companies, comprising DSF Delmec Ltd, Charles Leek & Sons Ltd and Woodford Sheet Metal Ltd.
Synergies have been identified within each company, for improved financial performance and continued growth.
Jonathan is very pleased with the continued support he’s received from his funding partner. “Having worked previously with ABN AMRO Commercial Finance, I knew that they’re easy to work with,” he says. “I knew they could deliver the funding I required, in the timescales I was working to."