Sale of Facilities Management & Property Company
The Company
Expectations Property Group (EPG) is a Cheshire-based property services company providing a comprehensive service offering. Since the group began operations in 2006, it has generated a loyal and growing customer base through word of mouth and reputation.
Working with a client base of property management companies, EPG provides a wide range of services for clients spanning the North of England and the Midlands. The company’s offering included a suite of ‘soft’ facilities management services, provided to the common parts of apartment blocks such as cleaning, window cleaning, grounds maintenance, electrical services, caretaking services and the provision of concierge services.
The group caters for properties ranging from small residential developments with a handful of apartments to large developments consisting of hundreds of apartments. EPG maintained a strong record for client retention, with many of its clients being with the company since incorporation.
Hornblower was introduced to EPG by the company’s longstanding accountants, Geoffrey Horley Associates. The accountancy firm had chosen Hornblower following extensive research of the business broker market on behalf of their client. In this process, Geoffrey Horley had grilled several business brokers before recommending their client to select Hornblower.
The Situation
Following its introduction to EPG, Hornblower prepared a free indicative valuation and held several meetings to help the owner prepare for a sale. A key aspect of the sale preparation involved highlighting how buyers were likely to view and scrutinise the business in the context of the industry and the wider market.
The market for facilities management and property maintenance businesses is characteristically buoyant, and we received a lot of interest for EPG in a short space of time. During the sale process, we had received a total of 45 expressions of interest and had had discussions with numerous qualified and funded buyers. We finally reached Heads of Terms with a preferred bidder within 4 months of launching the business on the market.
Unfortunately, as sometimes happens during sale transactions, the process encountered a setback when the buyer hit funding issues and pulled out of the deal after a month. However, being well connected within the facilities management sector, Hornblower was able to line up another buyer within a matter of weeks.
The Outcome
EPG was sold to NJC, a national commercial cleaning business based in London with a trading record of almost 40 years. As with many deals, there were many detailed aspects to be agreed and negotiated through due diligence and the drawing up of contracts, which is an area we pride ourselves on in managing transactions to a successful conclusion. The deal completed in early January 2023 - just 8 months from starting the process.
The result is a secure financial future for the vendors of EPG, enabling them to focus on other entirely unrelated interests following a relatively brief hand-over. The acquisition also represents a valuable cash generating bolt-on acquisition for the NJC Group, which fits nicely into their strategy to expand operations across the North West of England and the Midlands.
The deal was managed by our Business Sales and Acquisitions Consultant, Mark Sykes. Mark manages business sales for Hornblower across the UK and internationally. The vendors were also advised by Cook Corporate (Legal).
SOLD – January 2023
