Majority sale of shares for Orbital Fabrications
PEM Corporate Finance were appointed by Orbital Fabrications to provide M&A advice on the sale of 80% of its shares.
We advised the owner and founder of a specialist Health, Safety, Fire and Environmental consultancy on a succession buyout, transferring ownership and building a team for the future.
The business had grown strongly over recent years, helped by its relationship with long-term clients and the contribution of a strong management team. Our client wanted to commence his retirement planning and transfer most of his share equity to the management team and other staff.
PEM Corporate Finance designed a succession buyout process to deliver an orderly succession of business ownership which would motivate and retain key staff and offer opportunities to use share options to attract talented new recruits.
The company is focused on providing risk management solutions to clients in the commercial property sector and is headquartered in Cambridge. Their services range from assessing, auditing and consultancy through to training and risk management software.
We worked with the founder of the business over a period of time running up to the transaction to help work out his strategy and succession preferences. That early work made a good foundation for then structuring a succession transaction to allow the founder to retain a stake and involvement whilst allowing his team to be rewarded with the opportunity to buy the business.
The founder retained a small minority shareholding. An Employment Benefit Trust was also created to provide an “internal” market in the newco, allowing staff to both buy and sell their shares.
Legal advice was provided by Phillip Dempsey solicitors.