Inform Magazine

Why is the electrical industry proving so appealing to acquirers?

“The buyer wished to expand its footprint in the UK and the valuation was in line with our client’s expectations – a large trade buyer was their preference and we managed to achieve this.” Another mechanical and electrical design business sold by KBS was AVUS Consulting, which includes sustainable and low-energy offerings among the lighting and ventilation services it provides to buildings in a variety of sectors. The business based in Corby, Northamptonshire, which undertakes projects valued up to £60million, was sold to Wintech Group who were making their first acquisition through KBS. Adam Nelson, the Deal Executive who advised on the sale, said: “We achieved a good valuation for AVUS, as well as a suitable target working capital and surplus cash figure for both parties through effective communication.” Paul Savidge, Managing Director of Wintech, commended KBS’s approach throughout the transaction and Adam’s invaluable role during the process, saying: “Adam did a fantastic job in keeping things moving and getting us over the line.

Although it may not be happening as quickly as some climate activists would prefer, the gradual transition to electric vehicles is driving demand for more charging points – which is among the key areas of the services offered by AC Electrical Ltd, for example. Similarly, sustainability is an increasingly important factor in building design with regard to the lighting, energy and ventilation systems which companies such as AVUS Consulting and T4 Mechanical are contracted to draught and install. What are the main drivers for selling an electrical business? Besides the evident demand for such companies at present, the rising cost of materials presents more challenging financial conditions for those in the supply chain. *Strong pricing pressures are likely to constrain growth in profitability - which in the example of electric lighting equipment manufacturing is forecast to increase only slightly over the next five years, as firms attempt to enhance their productivity and step up capacity utilisation. (*Source: IbisWorld) If you are thinking about selling your business, call us for a confidential discussion on 0161 258 0118 or

"Many thanks again to KBS — it’s very much appreciated.”

enquire via our secure website: www.kbscorporate.com

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