What our Clients Say

Receivership to recovery to successful sale - restructuring takes security business to £12m valuation

In 2000 the Directors of Attlaw Security & Protection were facing a serious cash-flow crisis.

The Roehampton-based retail guarding business had been bought out of Receivership in July but by the following November was again in difficulty. The company was providing excellent service to a growing band of loyal, happy customers but, due to poor financial management and misleading internal information, was again about £250K insolvent.

The Attlaw Board decided to take action and called in Hyde. A recovery plan was approved by the Board and initiated within weeks, including an immediate cost-cutting exercise; a re-negotiation of margins on existing contracts to realistic levels; a £100k rights issue to relieve some of the cash strain; and a concerted sales drive. Management and reporting structures were re-organised with a focus on better financial forecasting.

The company quickly returned to profitability and solvency, at which point long-term plans were then put in place to create a highly profitable cash generative company from which dividends could regularly be paid. Hyde also advised on the possibility of a trade sale or grooming the company for flotation on AIM.

Attlaw were later approached by potential purchasers the MacLellan Group Plc, a quoted Worcestershire-based facilities management provider. The synergies made the deal look right for both purchaser and vendor and Hyde completed sale negotiations with MacLellan paying an initial £5m with the total potential price of £12m, the balance being largely conditional on profits over the next two years.

Attlaw's Managing Director, Mike Crump, said: "Together with Hyde Company Sales, we took Attlaw from the brink of disaster to a great business. Their negotiating skills achieved an excellent deal for all parties with the right buyer at the right time for the right price".

Hyde director Malcolm Coomber commented: "The successful sale of Attlaw shows what can be achieved out of even the most difficult business situations. After all of their hard work, I'm delighted that we were able to structure a deal which meant the Attlaw shareholders, including employees, were able to realise substantial profits and have the option of keeping a significant interest in the larger group."

Finding The Right Buyer Helps English 2000 Brand Go Global

"How do I get the resources needed to ensure the business I've set up continues its growth into the future?" "How do I get the time for increased family commitments?" When Anita Wild, chairman of Bournemouth Education Centre Ltd, faced these two common but conflicting challenges she asked Hyde Company Sales to help "square the circle". The resulting deal will take the Centre's English 2000 School of English brand into Europe and Asia under the guidance of new owners Europasia Education PLC and enable Anita to plan ahead for spending more time at her family home in Germany.

Anita founded the English 2000 School of English in Bournemouth in 1992, and developed it into a market leader in the field of English-based work experience programmes. Originally recruiting mainly from Europe, the school has expanded to an annual capacity of 1,500 students and a brand presence across Asia.

"There are great growth opportunities for the brand overseas but it became clear to me that we did not have the resources on our own to really take advantage of these. At the same time the large amount of foreign travel required to develop the business no longer worked with my family commitments." said Anita.

Hyde's Colin Ellis and Nick Shires worked on the deal, helping Anita over a two year period to identify potential purchasers, prepare the business for sale and negotiate the deal with Europasia Education.

Nick said: "We were delighted to broker a deal that met Anita's objectives for herself and the business she founded. That came from taking the time to really understand the business and the options for it. In our early discussions Anita had been looking for a price of around £500,000. We saw the potential value was significantly higher for the right buyer and were able to structure a deal which, including earn-outs, a secured loan and rental income from the freeholds Anita retained, will be worth over £800,000."

Anita added: "Hyde Company Sales were superb – they found a buyer who was an ideal match for the business and achieved a total package value considerably above what I had expected to receive. Doing any deal is nerve wracking but their help was invaluable. They were good to work with - straight forward, tough but level headed when the butterflies started!"

Hyde helps leading diamond drilling and sawing business with management buy-out

London based Robore Group is the UK's leading Diamond Drilling, Diamond Sawing and Controlled Demolition contractor, providing a specialist service to the construction industry. The company was formed in 1986 and is now one of the largest organisations of its kind, employing over 100 staff.

At a point where their growth was accelerating, they felt that their existing advisors could no longer meet their requirements in terms of the level and breadth of service offered and asked Hyde for assistance.

Paul Nattrass of Robore said: "Our bank recommended that we work with Hyde on the management buy-out of our business. We found them to be down to earth, highly focussed and always on hand to run through the details. They have a real flair for negotiations which was invaluable in getting the right deal for us.

"It's a tribute to the way they do business that they continue to work for both the buyers and sellers!"

Hyde director Malcolm Coomber said: "We have worked with a number of clients in a similar position to Robore, with a director or directors looking to exit the business and leave it the hands of a management team they trust. We are delighted to have been able to work with Robore for the MBO and other issues since then, building a strong relationship and understanding of their goals to help them drive the business forward."

Grooming for the perfect sale

"Hyde helped to build Rapid Group Plc into a robust and valuable business. When it came to the disposal, they then assisted with the complicated sales process to a company listed on the German Neuer Markt." "It is unusual to find professionals with such commercial flair and strong understanding of what is needed in the real world of business. Their help has been invaluable to my colleagues and I over two decades." John McCartney

Hyde pulls out all the stops to enable the completion of Tri-Q management buy-in deal

Hyde have been praised for pulling out all of the stops to enable a large management buy-in to be completed.

GE Commercial Finance Ltd and the management buy-in team approached Hyde regarding the finance they were providing for a multi-million pound deal in the plastics sector. They needed due diligence reviews at three potential acquisition targets as well as advice on the tax situation for the proposed group. Hyde Director Colin Ellis said: "Having been authorised to carry out the assignment on December 3rd we sent teams to production sites in Manchester, Cheltenham and Norfolk over the next few days and, working closely with GE and the buy-in team, were able to provide a draft report within a fortnight.

"This was finalised by the 21st and the deal was signed two days later. In the busy run up to Christmas and the year end this was quite a challenge for us but I'm delighted that the end result was a successful deal for our clients."

Adam Wardle of GE Commercial Finance Ltd said: "Not only did the Hyde team handle the job professionally and achieve the quick turnaround which was essential to complete the deal but the directors took time to understand the issues, kept us informed throughout and provided clear and concise information. We look forward to working with them on similar projects in the future."

Martin Urquhart of Tri-Q commented "Hyde were a pleasure to work with, helping us, along with GE, to purchase the business and take it forward. They were down to earth, approachable people who were always available when we needed them and their advice and commitment played a key role in getting the deal done successfully."

Hyde helps UK management of Intrum Justitia with management buy-out

Hyde Company Sales has helped launch a new company, Face2Face Contact Limited, when former Intrum Justitia UK and Ireland Managing Director John Easden led the management buy-out of the field services division from Intrum Justitia – Europe's leading provider of credit management services.

Intrum Justitia provides a range of services, from credit information and invoicing through to sales ledger services, reminders and collection to debt surveillance and collection of written-off receivables.

Hyde acted as Corporate Finance adviser to the MBO team and helped arrange the finance for the deal. John Easden, managing director of Face2Face Contact, said: "As a specialist provider we will be dedicated to delivering outstanding results from field activity which will enable Face2Face to provide clients with improved value and service.

"Hyde's constructive advice on the business model and expertise with dealing with MBO's has been invaluable in getting this deal with Intrum Justitia completed, helping us realise our vision for the future of the business."

Hyde Director Colin Ellis, who led the team, said: "Having been introduced to John Easden through a recommendation from another of our clients, we helped bring together the team to get the MBO done in a fast and efficient manner.

"By bringing in Hyde's tax specialists and working closely with the client's solicitors and bankers, we were able to structure an MBO which represented a good deal for Face2Face and provides the opportunity to expand from a sound independent base in the future. John and the team were a pleasure to work with throughout the deal and we are confident of their future success."

Hyde helps with the merger of High Net Worth insurance brokers, SmithGreenfield Services Plc

Prior to the merger, SmithGreenfield Services Plc was a loose amalgam of three inter-connected businesses specialising in insurance services for people with high disposable incomes. The businesses had common shareholders but, although they could clearly see the benefits of merger, they did not have the expertise to put the businesses together on an equitable basis.

In the words of managing director, Steve Smith: "We knew we wanted to achieve a top quality, specialist business with everyone focused on the future and incentivised by a common goal. We simply didn't know how to get there. We were then recommended to Hyde by a long standing client of theirs who had worked with them on the successful merger of his business a year earlier.

"Hyde filled us with confidence for the success of the project. No fancy promises or rushing the deal, rather a very sensible transaction timetable covering seven months. Every step was carefully programmed. We covered the technical issues such as Inland Revenue clearances, dealing with the FSA and creating an EMI Scheme for key staff and the legal matters including the sale and purchase agreement and shareholders agreement. We also spent time perfecting the practical matters such as an agreed business plan and the all important commercial issues like creating maximum marketing impact from the merger."

The result was that SmithGreenfield launched a merged business with an ambitious target to quadruple turnover over the next five years and they are off to a flying start!

HCF helps Milbourne Financial Services reach the next level

Hyde Company Sales were approached by long-standing clients Milbourne Financial Services Limited to discuss the issues they faced in taking the business to the next level. With the changes in the industry and the burden of red tape, they had found it increasingly challenging to expand and prosper.

In a similar position were Farnham based Hayden Financial Services Limited. The 'simple' answer was to merge the two. After a year's careful planning and negotiation HFS Milbourne was born and is now trading successfully from new offices in Guildford.

Managing Director Rod Milne is delighted with the result. "We were fortunate to be able to plug into Hyde's experience to guide us through the merger minefield. In addition to obvious areas such as the simple financial arithmetic of the deal and premises there are so many other issues to take into consideration. These range from bureaucratic and compliance issues with the likes of the Inland Revenue and the Financial Services Authority to other issues such as business hive-up (i.e. effectively getting all the trading in the right place in the new structure) and the implementation of Enterprise Management Incentive Scheme options (a highly tax-efficient employee share scheme) to incentivise key staff. All of these mean that you have to have the best advice.

"After all the hard work and the various hurdles, however, it was certainly worth the effort. We now have a merged business which will enhance the benefits to our clients, with more in-depth expertise and a wider offering, as well as to the shareholders, who will benefit from substantial cost savings and expansion opportunities."

Hyde Company Sales Director Malcolm Coomber said: "We have no doubt that HFS Milbourne will be a great success as it has all the right ingredients for a successful merger – parties with the same common goal, a good blend of management and other staff, significant cost savings to reduce outgoings and great opportunities to grow the levels of income. We are looking forward to working with the HFS Milbourne team going forward and helping them with their future goals."