Tag: Deals

HNH lead advisor in SSAS Solutions sale

Posted on by Rory Moynagh

SSAS Solutions has become part of listed wealth management group Mattioli Woods.

SSAS is a Belfast-based firm specialising in offering business owners tailored retirement schemes. Established in 2009 and now employing 12 staff, it provides pension administration and trustee services to more than 350 small self-administered scheme (SSAS) clients, with approximately £380m of assets under administration.

Director-owner Allison Chambers of SSAS expressed her appreciation of the role HNH played in the deal.

“We were delighted to work with the HNH team, who supported and guided us throughout the process. Their wealth of experience and negotiating skills were paramount in terms of the successful outcome,” she said.

This is the latest deal announcement in a sector for which consolidation has been a key recent theme. A trend that HNH believe will continue throughout 2019 and beyond.

“In recent months, we’ve seen Davy acquiring the former Danske wealth management business, 1825 acquiring BDO’s wealth management business and now Mattioli Woods acquiring SSAS Solutions,” said HNH Directors Richard Moorehead and Wayne Horwood.

“We were honoured to act as lead advisor to Allison and Michael and would be interested to speak with any other business owners in the sector who may be considering their options.”

Mattioli Woods said it will be business as usual for the SSAS Solutions team while it will also be looking to enhance the team as it expands its operations into the region, including the creation of a new administration hub for the group and the development of the existing client offering to include SIPPs (self-invested personal pensions).

“Being part of the Mattioli Woods group provides us with an additional resource and group support to enable the business to grow while still maintaining our strong client values, which also mirror those of Mattioli Woods,” said Allison Chambers and Michael Galway, director-owners of SSAS Solutions.

Mattioli Woods’ group managing director Murray Smith added: “We are thrilled to welcome the SSAS Solutions team into the Mattioli Woods family. A great opportunity to build on the success of an established business in Northern Ireland – where we already have a number of clients – we’ve known Michael and Allison for a number of years and have huge respect for the technical expertise their team offers.

“Their well-regarded skills and knowledge will be a valuable addition to our growing business, serving to further strengthen our services to clients and customers throughout Northern Ireland. We look forward to welcoming them to our expanding team.”

Shortlists revealed for NI Dealmakers Awards

Posted on by Rory Moynagh

HNH features prominently in the 2019 Northern Ireland Dealmakers Awards shortlists.

We have been shortlisted in the Corporate Finance Team of the Year category. Craig Holmes features in the Dealmaker of the Year list. While, we were involved in a number of deals which have also gained prominence – the sale of fscom’s KYC Pro product to PWC, funding for ISL Waste Management Ltd (both feature in Deal of the Year – below £2.5m) and the acquisition of Alumasc Facades by Kilwaughter (Deal of the Year £2.5 – £10m).

HNH Director Richard Moorehead is proud of his team:

“2018 was a fantastic year for HNH’s CF team, which nearly doubled in size from five to nine team members over the course of the year. As well as giving us crucial extra bandwidth, our targeted recruitment has added expertise in financial modelling, transaction services and debt advisory,” he said.

“We completed 15 transactions during 2018, covering a wide range of sectors and transaction types. Having three of our deals (Kilwaughter, FSCom and ISL) shortlisted for deal of the year is testament to the strength of our team and their hard work and dedication.

“2019 has continued in the same vein as 2018.  At the end of last month, we completed the sale of the leading independent foodservice business, Foodco, to Henderson Foodservice and have another four or five deals scheduled to complete before the end of this quarter. ”

The annual NI Dealmakers Awards aim to recognise the high quality professional advisory firms and funders in Northern Ireland and some of the best deals in which they have been involved in over the previous calendar year. All winners will be revealed at the gala dinner event set to take place at the Stormont Hotel in Belfast on 14 March 2019.

Should I stay or should I go?

Posted on by Rory Moynagh

The forthcoming Christmas break is, for many business people, the one time of year they can enjoy a proper break, away from the constant interruptions of emails and deadlines, and spend some quality time with friends and family, reflecting on the year just passed and the challenges that lie ahead.

This period of reflection is often the catalyst for change and we frequently find ourselves spending much of January meeting prospective clients who have expressed a desire to sell their business.

There are a number of valid reasons why someone may come to this decision including:

  • I have taken the business as far as I can.
  • My attitude to risk has changed.
  • The economy/competition/technology is a threat to me.
  • My team doesn’t have the ability to develop the business.
  • I want to capitalise on entrepreneur’s relief while it is still available.
  • Multiples are strong in my sector and I want to get out at or near the top of the market.
  • I had an approach it has got me thinking.
  • I can’t work with my co-shareholders anymore and we need to go our separate ways.
  • Personal reasons such as a health scare or simply a desire to spend more time with family.

A key part of our process is to look beyond the headline reason for the decision and understand the underlying motivation.

We have bad days, or weeks, when work isn’t going well, the pressure is building and it just isn’t enjoyable.

However, for most business owners the decision to sell is a once or twice in a lifetime moment, so it is crucially important that proper consideration is given to the following thoughts:

  • Why now? What has changed in the business or personal circumstances?
  • What position is the business in? Does it need investment, new people, new systems, etc.?
  • What are the alternatives? Can something be changed that would take the pressure off and make work enjoyable again?
  • What could someone else do with the business? Are you selling an opportunity or a risk?
  • What will you do next? Even if the sale of a business yields a life changing amount of money, many sellers soon find themselves bored and seeking a new challenge.

It may sound counter-intuitive coming from a firm that ultimately gets paid when people sell their business, but we would much rather potential clients wait and sell for the right reasons, at the right time, rather than rush into a process which can be time-consuming, emotionally draining and indeed costly.

There is a high correlation between poor planning and aborted transactions; a failed process can linger over a business for years, putting doubt in the minds of employees, investors and potential acquirers.

Once the underlying reasons for wanting to sell are understood, only then should you look at the options, which may include:

  • A trade sale i.e. to another company.
  • A partial exit, achieved through selling a stake in the business to an investor, which would be a private equity fund, HNWI, family office, etc.
  • MBO, MBI or BIMBO.
  • Putting in place an exit readiness plan for a sale in the medium-term.

We will address these options in the weeks ahead, but in the meantime, here’s a link to our first blog in this series, ‘Why is succession planning crucial for your business?‘ .

HNH confirm sale of Bio-Kinetic Healthcare to Kingsbridge Private Hospital, Belfast

Posted on by Rory Moynagh

HNH Group is pleased to confirm the sale of Bio-Kinetic Healthcare Limited to Kingsbridge Private Hospital, Belfast.

Following the appointment of James Neill and Rachel Foster as Joint Administrators to Bio Kinetic Europe Limited in October 2017, Bio-Kinetic Healthcare – a fully owned subsidiary – has continued to trade under the control of the Joint Administrators offering a Bupa health screening facility in Great Victoria Street. As reported in the Irish News, we can now confirm the sale of this subsidiary to Kingsbridge Private Hospital, which is part of the 352 Healthcare Group, which will operate the clinic from its own site on the Lisburn Road, Belfast.

James Neill of HNH Group, commented ‘We are delighted to have been able to preserve what is a viable entity in its own right and to have secured the transfer of a number of roles’

Alan Cole, head of partnership centres at Bupa Health Clinics, said: “We’re really excited to have moved to this larger, world class location, and are looking forward to welcoming both existing and new clients through its doors.”

Bupa has stated that the relocation to the South Belfast medical facility could significantly increase capacity and lead to the number of patients being treated doubling over the next twelve months.

HNH Secure Three Nominations in Insider Dealmakers Awards 2018

Posted on by Rory Moynagh

HNH Group has been shortlisted in three categories at Insider’s Northern Ireland Dealmakers Awards 2018.

Yesterday, Insider Media published their final list of firms, banks, deals and individuals nominated ahead of March’s awards ceremony, which will be held in Belfast Waterfront.

The awards recognise NI’s top corporate finance professionals, funders and lawyers. An independent panel will judge the four deals, young dealmaker and dealmaker categories, while the other awards will be decided based on votes cast by business professionals.

gavin-early director
Gavin Early – HNH Associate Director

Belfast based HNH Group has again been shortlisted for the Corporate Finance Advisory Firm of the Year category, having won the award in five out of the past six years. Associate Director Gavin Early is up for Young Dealmaker of the Year, while Director Richard Moorehead is nominated on the Dealmaker of the Year list.

HNH’s Corporate Finance team is trusted by a wide range of clients, including company shareholders, private equity funds and plcs, to provide strategic advice on business sales and acquisitions, management buy outs and raising equity or debt finance.

News of the shortlist comes during a period of continued growth for the HNH Group. Last month the company was confirmed as the leading corporate finance adviser in the Northern Ireland market, in Experian UK and RoI’s M&A Review 2017.

Active M&A Market Helps HNH Group To Record Year

Posted on by Rory Moynagh

Multi-disciplinary advisory firm HNH Group has recorded the strongest year to date in its corporate finance department by completing 14 deals in 2016.

The independent Belfast-based company works with the directors and shareholders of entrepreneurial companies throughout Northern Ireland, Ireland and the UK providing expertise in corporate finance, business restructuring, forensic accounting, human capital and digital strategy.

In 2016 the corporate finance team advised on three acquisitions, two company sales, three management buy outs, two refinancing agreements and four growth capital backings.

The work included acting for Independent News & Media plc (Belfast Telegraph) on the acquisition of numerous titles from Greer Publications, including Ulster Business magazine.

HNH were particularly active in the healthcare sector, guiding the sale of Northern MRI to Affidea, a Dublin-based healthcare business. HNH also advised Keys Healthcare on a range of corporate activities during 2016 and Your Doctor Medical Services on the acquisition of clinics in the Republic of Ireland.

The company was instrumental in securing growth funding for a number of local companies, including Tascomi and Saliis. Funding was secured from the Growth Loan Fund to support renewable energy services provider Saliis in its rapid expansion plans. The funds will create up to 15 new jobs and enable Saliis to target overseas growth.

The momentum from 2016 has continued into 2017, with the advisory firm completing investment deals for Click Energy in Derry and PE Services in Cavan already this year.

Craig Holmes, managing director of HNH Group, said: “Last year was a very strong year for us, with our position in the market boosted by a steady upturn of the market for M&A and healthy levels of fundraising activity. It is encouraging to see different types of transactions taking place and activity spanning industries as diverse as engineering, healthcare, technology and hospitality, not to mention a range of active companies including PLCs, privately owned large companies and early stage businesses.

HNH’s growth in recent years is also down to the holistic approach we take with our clients, helping growing companies not only with their finance options, but also with essential services including identifying the right people for their workforce and helping them establish the right digital presence

HNH’s corporate finance team has consistently been at the top end of the Experian Northern Ireland deals data, and the firm retained the Insider NI Corporate Finance Firm of the Year in 2017, the fifth time it has won this award in the six years of HNH’s existence.

Commenting on the wider market Mr Holmes added: “In the local economy it is positive to see that banks are lending again and prepared to work alongside other funders. To date our business hasn’t felt any negative effects from macro-economic factors. In fact, a shift in exchange rates has made conditions favourable for Irish companies who wish to purchase UK based businesses and in turn UK companies are also identifying opportunities in Ireland to set up a Euro presence before the UK exit from the EU. We anticipate that these trends will continue throughout 2017.”

Wayne Horwood, managing director of HNH Group, said: “As a young organisation we are delighted that our dynamic client base is growing in Northern Ireland and beyond. We are seeing a wide range of transactions which gives our business an exciting pipeline for the coming months and years ahead. We anticipate that there will be further recruitment in 2017 to respond to the increasing demand levels.”

£5.8m acquisition deal led by HNH Group

Posted on by Wayne Horwood

HNH Group is delighted to announce completion of the sale of Lisburn based ‘Nelson Hydraulics’ to Lancashire Company ‘Flowtech Fluidpower plc’ for a combined value of £5.8m.

Having celebrated 50 years in business during 2015, Nelson Hydraulics Limited (NHL) is a market-leading supplier of hydraulic components and hydraulic hose assemblies, throughout Ireland, the UK and beyond. The company has been a genuine success story within Northern Irish business on a long term basis.

Following many years of profitable growth, the Nelson family engaged HNH to advise on potential exit options.  HNH identified Flowtech Fluidpower as an ambitious and growth-focused company for whom there would be significant strategic rationale underpinning the acquisition of NHL.

As part of the deal, Mark Nelson, who has led the business for the past seven years, will remain as managing director. Mark commented “this transaction is a significant milestone for Nelson Hydraulics, which comes after a long and successful period of family ownership. The sale to Flowtech and the opportunities it will generate will position the business for many more years of growth and prosperity. HNH were instrumental in helping us to realise our ambitions, through managing the sale of our family business in a sensitive and professional manner.”

Richard Moorehead and Wayne Horwood advised the shareholders on the sale. Richard commented, “Nelson is a local business with an international presence. We were delighted that the shareholders engaged us to assist them in realising their investment. With Mark Nelson remaining as MD and Flowtech bringing its expertise and financial firepower to bear, we’re confident that the business has everything it needs to continue to thrive.”

HNH Group is a specialist Corporate Finance advisory service with expertise in private equity, banking and due diligence. 

With a firm track record in providing corporate services to businesses of all sizes, our partner-led approach is based on listening, challenging and delivering creative solutions for our clients

MML Invest in Lowe Refrigeration

Posted on by Rory Moynagh

MML Capital has strengthened its position in Ireland by investing in Lisburn-based global refrigeration rental company Lowe Refrigeration. As part of its investment, MML will take a 55% stake in the company, in partnership with the existing Lowe management team led by CEO Rodney Lowry.

Craig Holmes from HNH originated the deal and acted for the Company. Holmes stated “It is great to see another Northern Ireland company attract a quality Private Equity investor such as MML to help realise its growth ambitions. Lowe has a global blue-chip customer-base, which can be further enhanced following this investment. HNH are working with companies in different sectors to attract Private Equity for growth or realisation, and that bodes well for the Northern Ireland economy.”

10995441304_f86eb585ec_bLowe Refrigeration is the world’s leading short term refrigeration rental company providing temporary cold solutions, in addition to hot equipment, to large food exhibitions, retailers, major sporting events and festivals internationally. The company services events such as the Singapore GP, Wimbledon, Glastonbury and the US Open Golf from nine locations throughout Europe, the USA, Middle East and Far East. The company has doubled in size since Rodney Lowry led the acquisition of the business from the founding Lowe family in 2008. Lowe Refrigeration expects to post revenue of circa €20 million for 2014.

Rodney Lowry stated: “We are delighted to receive this investment from MML. They rapidly grasped the future potential of the business and, importantly, the management team felt very comfortable working with them from the start of the process. MML has a strong track record of partnering with thriving businesses and supporting their growth ambitions. Therefore, I am very confident that we can now accelerate our development into new regions and new rental markets globally”.

The MML investment has been made through MML Growth Capital Partners Ireland, a €125 million fund dedicated to backing small and medium sized private businesses located on the island of Ireland.

Rory Quirke, who led the deal on behalf of MML commented; “We are delighted to be making our inaugural investment in Lowe. This represents an ideal transaction for us, backing a strong and ambitious team led by Rodney Lowry with the capital to continue to grow and build their business”.

MML Ireland’s Rory Quirke and Neil McGowan will both join the Lowe Refrigeration board, alongside Rodney Lowry and CFO Paul Lavery. The company is also pleased to appoint Mervyn McCall as Chairman of the board. Mervyn is a former director of the Mivan Group and the business will benefit from the experience and expertise Mervyn brings to the board.

Bank financing for the deal was provided by Bank of Ireland led by John Mathers in Belfast. Tughans acted as legal advisers to MML while Carson McDowell acted for Lowe Refrigeration.

http://www.insidermedia.com/insider/ireland/123978-mml-capital-invests-lowe-refrigeration?utm_source=ireland_newsletter&utm_medium=deals_article&utm_campaign=ireland_news_tracker

Mourne Observer sold for an undisclosed sum to the Spectator Group

Posted on by Rory Moynagh

The Mourne Observer, the largest selling weekly newspaper in County Down, has been sold for an undisclosed sum to the Spectator Group, owners of the Bangor Spectator and Newtownards Chronicle.

Founded in the late 1940s, the Mourne Observer remained a family-owned business for more than 60 years, with David Hawthorne taking up the reins as editor during the 1980s. Having decided that he would like to retire, David made the decision to put the business up for sale.

HNH provided advice to the shareholders throughout the process; partner Wayne Horwood commented “as with the Mourne Observer, the Spectator Group is also a family-run business, with a similar ethos to that fostered by the Hawthorne family. The transaction, as well as facilitating the retirement of David and Carole Hawthorne, will allow for a smooth transition to the new owners and provide job security for the staff”

Seven Technologies Attracts GB Investment

Posted on by Rory Moynagh

Seven Technologies has received investment from YFM Equity Partners, a GB-based Private Equity Fund of £6.6m. Seven is a Northern Irish engineering business that specialises in developing and manufacturing bespoke electronics and communications applications for operation in inhospitable environments for a wide range of international clients. As part of the deal, YFM Equity Partners has introduced a Chairman to the business, Richard Moon, an experienced non-executive director in a number of sectors including communications and electronics.

Seven Technologies was advised by HNH’s Corporate Finance team.

“Seven Technologies has demonstrated a strong track record of market penetration and profitable growth over the last few years to many international clients,” said HNH partner Wayne Horwood.

“The growth has been built on the strength of the management team and understanding of their market and customer requirements. “YFMEP’s investment in Seven provides the platform for future growth in international markets and it is excellent to see quality NI companies attract interest from GB based private equity houses.”

Founded in 2005, Seven Technologies is headquartered in Lisburn, Co. Antrim and employs 42 staff. Gavin Williamson joined the business as CEO in May 2011, bringing significant hi-tech business development experience from multinational electronics manufacturing and integration organisations. The company has a range of advanced products, such as electro-optic equipment and rugged computers, that it packages together to create bespoke solutions for particular requirements, typically involving use in harsh conditions prone to extremely high or low temperatures.

Seven Technologies prides itself in forming mutually beneficial partnerships with key organisations on a number of collaborative projects and shared research objectives. One such partnership is with two centres at Queens University – the Centre for Secure Information Technologies and the Institute of Electronics, Communications and Information Technology.

YFM Equity Partners invested £6.6m in an all equity deal through three of its funds: Chandos Fund and its two British Smaller Companies VCT.

Commenting, Paul Cannings (pictured) said: “The Seven Technologies team has a strong track record of growing their business, a loyal customer base and a clear path to future success. We believe that our funding and advice can help continue Seven Technologies’ development into a leading provider of highly sophisticated flexible technology solutions that are in high demand.”

Gavin Williamson, CEO, Seven Technologies adds: “YFM Equity Partners is a great funding partner for our business, as they understand our sector and have a strong track record of growing small British businesses. This funding will support our continued rapid growth and further investment in our highly regarded operational support teams.”