Care & Nursing

Hallam Medical was a specialist human resourcing company providing domiciliary healthcare professionals for the elderly. Founded in 2007, the company was contracted to three Local Authorities.

Hallam Medical’s owner, Mike Webster, had originally been looking to acquire a bolt-on business to expand the parent company, Hallam Service Ltd. He engaged Avondale to help identify a suitable acquisition target. After time spent reviewing the group’s growth strategy, it transpired that Mr Webster would be best served by selling the subsidiary business in order to fund his future growth plans.

Avondale observed that Hallam Medical was at the start of a strong earnings cycle, having secured a number of promising new Local Authority contracts. The team decided to market the business around its robust performance projections rather than previous earnings. A deal was agreed with Supporta Plc; the owners were attracted by Hallam’s obvious potential, and they were willing to pay a premium for a lucrative growth opportunity.

Avondale helped structure a deal with Supporta on a deferred payment basis. This innovative agreement meant the final price paid for Hallam Medical would be determined by the company’s future earnings performance. The final payout far exceeded Mr Webster’s original expectations as a result, with the final deal value rising to more than £4 million.

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