RJ Lifts
- Sector
- Lifts Design, Maintain & Installation
- Size
- £3.0m EBITDA
- Advisory
- Sell-Side
- Debt Advisory
Background
- RJ Lifts provides installation and maintenance services for lifting equipment, mainly passenger lifts, to a national estate of blue chip, public sector and SME customers, including household names and public sector customers of standing.
- Originally founded by the father, the son Richard had assumed day to day control in the years preceding our engagement with the father in the process of stepping back.
- Running into Covid the business charted 30% CAGR and post-Covid that growth rate remained as the critical nature of supply was evident in a market that was also heavily fragmented and where customers wanted the intimacy of a SME-service.
- Independence had made contact with the vendors direct as part of research & origination for a potential building services group. The father did not want to sell the business at the time to anyone other than his son (Richard) but was so impressed by Independence approach that he requested we be retained to support his son to plan for succession & potentially support with future buy-build requirements of their own.
Process & outcome
- We undertook a detailed Options review – including mapping what would be possible in so far as facilitating an MBO and buy-side support. In exploring all shapes and options for MBO we identified that it was feasible to facilitate an MBO between father and son, shortly followed by a sale to EOT for the son to optimise value.
- We explored the extent to which buy-side activity was also feasible but given the priority was to realise a maximised EOT sale at 0% CGT, the buy-side scope was removed and the sell-side MBO>EOT was scheduled and delivered in 6 months.
- New trustees were appointed, supporting the family through both the change of control and the nuances of employee ownership. New funders were engaged to facilitate early settlement of the EOT such that family could take material sums day 1.
- Through our extensive work – validated by third parties appointed by Santander to due diligence – we were able to demonstrate an Enterprise Value which made the group the 3rd most valuable in their sector outside of those already owned by global OEM and institutional investors.
“Independence have been hugely helpful to the family and presented & delivered on options we just didn’t know existed before speaking to them. A sale to EOT was the right outcome for the business and we are very thankful for their support in making that a reality and in turn allowing us to protect the continuity & legacy of the business, its name and team”
