Lanway success in Chess move – Managing an efficient and profitable disposal
Lanway, an established £23m turnover, end-to-end IT solutions business, was sold to the Chess Group in May 2016. Having run Lanway since 1990, by mid-2015, the owners were ready to take advice on their exit strategy. With a specialist focus on the IT and telecoms sectors, comprehensive market knowledge and an excellent reputation, Evolution Capital brought exactly the skills the vendors needed to help maximise value from the sale of their business.
Effective planning and preparation
Evolution Capital’s unique approach started with a Strategic Review to ensure it comprehensively understood the business as well as the owners’ requirements right from the start.
The review provided:
- Comprehensive advice on exit and value maximisation strategy
- Guidance on effectively removing any potential transaction issues
- Realistic business valuations
- Foundation for a formal sales process and the target market landscape.
Lanway’s owners then made an informed decision to commence a sales process.
Formal sale process
Evolution Capital professionally prepared an anonymous teaser and a detailed Information Memorandum (“IM”), which helped to optimally present the opportunity to potential acquirers. This allowed prospective buyers to develop a clear and insightful view of Lanway and identify the possibility of creating additional value in their own businesses.
Maximising value and finding the right buyer
Evolution Capital’s comprehensive knowledge of the sector, extensive research capability and in-depth understanding of Lanway enabled it to identify a focused list of appropriate prospective buyers. The interest from numerous qualified potential acquirers led to a programme of meetings, followed by a review of numerous indicative offers. The competitive environment allowed the owners to drive up value and, eventually, move forward with a buyer that most suited their requirements. Evolution Capital fielded a team of the most appropriate professionals, including dealmakers, transaction specialists and solicitors in order to get the sale concluded on satisfactory terms. Evolution Capital fully managed the process and carried out the negotiations, allowing the vendors to continue with their daily tasks without distraction.
Lanway was established in 1990 and is involved in business to business supply, installation and maintenance of end-to-end IT infrastructure and solutions, including managed services.
The transaction was successful and Lanway had completed its Chess move. The vendors have now moved on and, as well as appearing at Evolution Capital sector events and recommending the firm to their industry peers, are now focused on repeating the Lanway success with other non-competing business interests.
We could not have achieved this level of success without Evolution Capital. Their team was excellent throughout our 9-month engagement with them. From start to finish, they expertly dealt with everything. As a professional advisory firm focused on realising maximum value, they certainly delivered and I would highly recommend their unique approach and extremely experienced and capable team.