Our Member Firm Assists With Management Buyout of Bodywork Repair Business
Our Welsh member firm, MHA Broomfield Alexander assisted with the sale of a bodywork repair business. 1st Choice Accident Repair Centre Limited is an independent Cardiff based business which specialises in bodywork repair for accident damaged cars and vans. The business has been running for over 8 years and the owners have developed a strong reputation in that time.
The directors of 1st Choice made a decision to sell the business to the Management Team as their preference was to see the business continue as an independent facility focusing on customer service and quality. The acquiring Management Team has worked in the business for a number of years and the existing Managing Director is remaining with the business for a period of time to ensure a smooth hand over.
MHA Broomfield Alexander helped the client by:
- Supporting discussions with the Management Team to explore the viability of a Management Buy Out;
- Supporting negotiation of the valuation and business structure, including the position around freehold property;
- Assisting in the compilation of the data room to provide all necessary information to the Management Team’s advisors;
- Supporting the due diligence process by providing financial and commercial information, and supporting the negotiation of terms to protect the Vendors’ position;
- Negotiating a ‘locked box’ format for the completion accounts to expedite the final stage of the sale process; and
- By providing personal tax advice on Capital Gains Tax, Tax Covenants and Warranties in relation to the transaction, together with providing advice on employment contracts for the Directors remaining within the business.
Ieuan Williams, 1st Choice Managing Director commented:
“We are grateful for the support provided to us by Seamus and the MHA Broomfield Alexander team at all stages of the process, which enabled us to see the business continue in the legacy we established and we wish the management team every success.”
For more information about this deal, please click here.