Founded in 1994, Derby-based Tecforce Ltd was a leading supplier of engineering services to the Rail Industry, including repair, overhaul, consultancy, testing and training.
Avondale was approached by Tecforce’s owner to oversee the sale of his business. With strong short-term growth projected and a number of excellent new sales prospects in the pipeline, the client was keen to secure a buyer as swiftly as possible in order to capitalise and to leave room for an appropriate handover period.
Through intensive research, Avondale quickly identified several willing bidders. The most attractive offer was made by MCT Reman, a specialist remanufacturer of automotive products for which the acquisition offered a number of exciting synergies. The buyer was prepared to pay the full value of the fee on completion, with the addition of a minor earn-out to be paid over a one-year period depending on future earnings.
Tecforce’s owner was extremely pleased with the choice of acquirer and agreed to stay on with the business in an advisory capacity. By cementing the new sales prospects, he was able to ensure further growth in earnings for Tecforce, and extract maximum value from the earn-out agreement. The newly merged company has continued to strengthen with an expanded client base and several new services.