Established in the early 1980s, Aqualeak was a highly profitable manufacturer and distributor of leak detection solutions, supported by a strong industry reputation and an extensive loyal client base.
As one of few UK providers in a growing market place, Aqualeak had been able to achieve a high profit margin of £320k per annum, from revenues of £1m. Aqualeak’s owners, who were in their 60s, felt the time was right to pursue retirement. They were introduced to Avondale via a recommendation, and instructed the firm to find a suitable buyer for the business.
Moving quickly, Avondale conducted extensive research and marketed the business to a wide group of potential purchasers. After narrowing down the list to three willing buyers, Aqualeak’s owners could select the option they felt was most closely aligned with their values. The acquirer, a group of companies, was keen to add an environmental product to its operations and was looking to grow the group via serial acquisitions.
Heads of Terms were agreed on the deal within eight weeks, with the buyer availing of a loan guarantee scheme to help finance the purchase. Avondale’s team delivered the owners a lucrative exit package, and the peace of mind of seeing their business become a key part of the acquirer’s growth strategy.