Pace Equity was approached by the majority shareholder of Delta Environmental Services Ltd to assist in a review of the strategic options open to him. He had formed the company in the early 1990’s and built it into an £8m turnover, profitable entity with a strong management team. He was considering either building the business to its next level of development with the possibility of acquisitions, or realising his investment in the company and pursuing a new career.
As part of this process Pace Equity undertook a detailed valuation of the business taking into account market conditions, similar transactions within Delta’s sector, the company’s own track record and its future prospects. At the conclusion of this review the majority shareholder decided to sell the company.
Pace Equity conducted a targeted and tightly controlled process, quickly generating interest from a number of trade buyers and private equity backed teams.
GSH Group plc, an Aim quoted facilities management company, successfully acquired the business following a competitive process. The price achieved was a premium to the original valuation. There is a strong strategic fit between the two companies.