Venture-People provide essential support for people experiencing complex mental health issues, enabling them to succeed in community placements. The business was expanding rapidly since taking its first referral in December 2015, and the shareholders felt that this could be expedited by being part of a larger organisation, and were keen to stay involved and be part of the growth.
Avondale and the shareholders agreed to an open market launch for Venture-People in Q3 2019, and during Q4 we engaged with a number of potential acquirers. In January 2020, we narrowed our options and were pleased to agree terms with a much larger group in the care sector. Unfortunately, this deal was postponed in March due to Covid-19.
However, Venture-People was trading strongly still. We decided to seek another purchaser and re-visited marketing in May. Despite Covid-19, interest levels were strong and we were able to e-meet a number of select parties within a short period of time.
From the first video conference with Mountain Healthcare, it was very apparent that the ethos between the two organisations was an ideal match and that Mountain Healthcare could provide the corporate skillset that a younger company like Venture-People were yet to develop. Further conversations were held to assess the fit in a number of areas, and Mountain Healthcare quickly made a compelling offer.
The opportunity to be part of the Mountain group and access that knowledge held great attraction for our clients and the offer enabled them to benefit from future growth of the group moving forward. Terms were agreed quickly.
The transaction was driven by Literacy Capital, Mountain’s investors and advisors, and Avondale Corporate, and we were able to complete the transaction in under eight weeks. The vendors and purchasers are delighted, and looking forward to a successful future together, continuing the essential support in the healthcare sector that both organisations provide.
“I had been fortunate to work with Avondale in a previous transaction, so when thinking about the next step for our business felt confident in seeking their guidance. I have been impressed by the Avondale team’s professionalism and their expertise was shone through when working throughout the pandemic. As a team, we felt we could trust Sally; she took the time to understand our priorities and, with a good sense of humour, supported us to feel confident during all stages of the negotiation.”
Rebecca Pacy, Founder, Venture-People