FULL DISPOSAL, SUPPORT SERVICES
MatthewsDaniel Limited was one of the few independently owned loss adjuster and risk assessors left in the UK. The company was purchased from a significant Middle Eastern figurehead looking to dispose of all his overseas assets in 2010. Andrew and Craig advised the management team during the MBO process in 2010.
In 2014 MatthewsDaniel where considering their options regarding a full or Partial Sale. Obviously they turned to their Corporate Finance advisers Andrew Lock and Craig Hewitt-Dutton of LDCF for advice on the options available to them.
MathewsDaniel over the years had received a number of approaches from large multinational companies but before they embarked on a Full Trade Sale process, they wanted to know the potential value of a partial sale. LDCF therefore arranged for a number of private equity firms to provide offers on the basis of a Partial Sale, this allowed the management team to seriously consider both options before ultimately embarking on a Trade sale. The chosen suitor was Bureau Veritas (“BV”) the shareholders chose BV because they were the best cultural and financial fit for MatthewsDaniel. After a significant period of negotiation, LDCF where able to secure a valuation for the shareholders of MathewsDaniel which far exceeded their original price expectations.
KEY DEAL CHARACTERISTICS
Full sale to French listed company
Multi jurisdictional transaction, trading over 19 countries
Negotiating with M&A director and Bureau Veritas board members to agree a price
Significantly exceeded shareholder price expectations
“WE HAD AN EXCELLENT EXPERIENCE A FEW YEARS AGO WITH ANDREW LOCK, PRIOR TO HIS FORMING LDCF. HENCE, WHEN WE RECEIVED INTEREST FROM POTENTIAL BUYERS SHORTLY AFTER ANDREW AND CRAIG HAD FORMED LDCF, WE IMMEDIATELY ENGAGED THEM TO ASSIST US IN EVALUATING THE APPROACH. OVER A PERIOD OF SEVERAL MONTHS, THEY WERE INTEGRAL TO ALL ASPECTS OF THE PROCESS, INCLUDING STRUCTURE AND PRICE NEGOTIATIONS AS WELL AS SEEKING ALTERNATIVE OFFERS. ULTIMATELY, A SALE AGREEMENT WAS CONCLUDED, THE TERMS OF WHICH RECEIVED UNANIMOUS SUPPORT FROM OUR DIVERSE EMPLOYEE SHAREHOLDER BASE. IMPORTANTLY, OUR SUBSEQUENT INTEGRATION WITH THE ACQUIRER, A LARGE GLOBAL PLC. HAS SO FAR BEEN VERY PROMISING, SOMETHING THAT IT IS IMPORTANT TO KEEP IN SIGHT DURING THE HEAT OF NEGOTIATIONS.
LDCF EXEMPLIFY THE CHARACTERISTICS ONE SHOULD BE LOOKING FOR IN A CORPORATE FINANCE PARTNER: THEY TAKE TIME TO UNDERSTAND YOUR BUSINESS AND THE AIMS OF SHAREHOLDERS; THEY COMMUNICATE CLOSELY WITH THEIR CLIENT; THEY ARE RESPONSIVE; THEY PROVIDE ORIGINAL THOUGHT AND CHALLENGE YOUR THINKING; LASTLY AND IMPORTANTLY, THEY ARE FUN AND POSITIVE TO WORK WITH.”